No. 59/04

Press Release: 2 November 2004

Corporation announces important changes to Homebuy scheme

The Housing Corporation has today announced important changes to its Homebuy scheme that helps people including key workers get onto the property ladder.

Under changes agreed with the Deputy Prime Minister, John Prescott, the range of properties which can be purchased through the scheme has been extended.

Jon Rouse, Chief Executive, said: "The changes are a direct result of the Corporation listening to what prospective home buyers want. We are delighted to extend opportunities for people by improving their chances of getting into a home of their own. The changes form part of an on-going review of our low cost ownership products and we will continue to monitor the success of these changes."

Homes available for purchase have now been extended to include:

• a home the applicant is currently renting from a private landlord provided it is self-contained and the landlord is not resident.
• a property owned or part-owned by a family member (except spouse/partner or business association provided) an independent valuation is obtained from RICS surveyor appointed by the housing association.
• an estranged spouse or partner's share in a formerly shared home can be bought out following a relationship breakdown where the disposal is required/ supported by a court order or a legal settlement after a court order.
• a 'second property' can be purchased even though the applicant has an on-going interest in a 'marital home' but only in circumstances where the property cannot be sold because the estranged spouse/partner is allowed by the court to remain there whilst bringing up dependent children.

Ends

Note to editors:

Homebuy is a Government-backed scheme which is funded and supervised by the Housing Corporation - the Government body which regulates and invests in housing associations (HAs) in England. Its aims are to free up social rented housing and reduce pressure on waiting lists in areas of high demand where there is a shortage of social rented housing and to aid recruitment and retention of key public sector workers in London, south east and eastern england.

The money available for Homebuy is limited, so not everyone wishing to take part can do so. Where the scheme is available, participating HAs operate waiting lists for key workers and/or people nominated by their local council.

Those who qualify for the scheme will need to contribute to the purchase price of a home through a mortgage and personal savings. The HA will make an equity loan available for the balance within pre-determined guidelines.

For more information contact Sandra White on 020 7393 2094; email sandra.white@housingcorp.gsx.gov.uk