York constantly tops ‘best place to live’ polls and it’s easy to see why. The historical city setting holds a sense of community, offers some great schools, and has a high level of employment.
However, housing in York and the surrounding areas can be pricey. As the Help to Buy ISA scheme ends for new applicants in November 2019, this could have meant a restricted market for first time buyers.
York City Council recognises this issue, that’s why they’re delivering Shared Ownership schemes to help you get on the property ladder. Many properties already offer Shared Ownership purchase options while a promise of more affordable homes built in the next five years means there will be opportunities in the future too.
Here’s your guide to the new – and planned – Shared Ownership housing schemes in York and surrounding areas like Selby and Malton.
How does the Shared Ownership schemes work?
A shared ownership scheme helps first time buyers get on the property ladder. Instead of buying an entire property outright, you buy a proportion of it from a housing authority or local council.
You’ll then pay rent on the remaining proportion that the housing authority owns. Over time, you can buy more of the property to own yourself, reducing the rent payments. Eventually, you can own the entire property.
Remember that you’ll also be paying your mortgage payments as well as rent, so make sure you can afford this. If you’re not sure if Shared Ownership will suit your financial circumstances, have a chat with your local mortgage expert to find out more.
Eligibility requirements for Shared Ownership or Affordable Housing schemes
You’ll need to meet certain eligibility requirements for a Shared Ownership housing scheme. As a first time buyer, however, most people will be eligible. The schemes vary slightly, but the basic requirements are:
- First time buyer or in the process of selling your only property
- Household income under £80,000 per year
- Must qualify for a Shared Ownership mortgage
- Good credit history (no CCJs or current bankruptcy, in most cases)
- No outstanding rent arrears
- Aged 18 or over
Each scheme has certain specific requirements, so be sure to check them before you apply. For example, most schemes give priority to first time buyers over those who have previously owned property.
York City Council Shared Ownership scheme
In a great move for first time buyers in York, the City Council’s Shared Ownership scheme isn’t limited to new build properties.
Instead, you can apply for any property on the open market to become a Shared Ownership property with the City Council. There are some restrictions but they aren’t difficult to meet. For example, it must be a mortgageable property (made of standard construction techniques) and have an independent valuation to ensure it isn’t too high against typical market price.
You can also use the scheme to buy a house directly from the City Council. These may be, for example, former council houses or even previous commercial properties suitable for conversion of use to residential (Former examples include a church and an old corner shop in a residential area).
The City Council also runs a Discounted for Sale Property Scheme. This is slightly different from Shared Ownership but does offer first time buyers another route to get on the property ladder.
Joseph Rowntree Housing Trust
Joseph Rowntree was a pillar of York society. A Quaker, he set up social housing in the city for those employed in the Rowntree factory and improved standards of living.
His legacy carries on in the Joseph Rowntree Foundation, of which the Housing Trust is one branch. This housing scheme offers priority to those in financial need (who wouldn’t normally be able to afford to buy) and people with special requirements such as adapted housing that is more expensive or harder to find on the open market.
They offer part ownership from 25% -75% with the option to buy out the remaining share later on. If your circumstances change and you’ve bought more than a 25% share, the Trust allows reverse share sales. This means you can sell back a proportion of the property to free up some equity, and instead pay a higher monthly rent. The Trust offers this to enable people to stay in their homes even through tougher financial times.
You can also apply to buy full-ownership properties through the Trust. Click here for more information about the Joseph Rowntree Housing Trust schemes.
Terry's former Chocolate Works Affordable Housing scheme
York was built on chocolate and social reform! As well as Joseph Rowntree, the city is famous for Joseph Terry’s contribution to confectionary. After he started out as an apothecary’s apprentice, he turned his hand to lozenges and sweets.
The company was sold to Kraft in 1993 and the huge factory by the York Racecourse was closed for good in 2005. It’s now the site of townhouses and apartments, all within a 20-minute walk to the city centre and a 2-minute walk to York Racecourse.
As with many new developments in the city, a percentage must be offered through Affordable Housing schemes. Find out more about the Terry’s housing scheme here.
Areas around York with affordable housing schemes
If you don’t want to live in the city centre, there are plenty of places surrounding York that offer great deals through Affordable or Shared Ownership housing schemes.
Malton is in Ryedale district, but is a quick 20-minute train journey into York centre, making it perfect for commuters. Prices are slightly lower outside of the city, and you’ll benefit from added countryside views. Malton is a popular market town with a thriving community.
Perhaps Selby takes your fancy, instead. Again, it’s only a short ride outside of York city centre, but offers more for your money. Take a look at the Shared Ownership scheme run by Selby council.
Seek advice on Shared Ownership mortgages
Shared Ownership is offered on the condition that you can get a mortgage to pay for your share of the property. Some providers offer special mortgage rates for Shared Ownership schemes too. These aren’t always available on the high street for you to find – which is where a mortgage adviser can help.
Book an appointment with our York branch to find out more about your mortgage options for Shared Ownership in the city and beyond.
Find out more about our Mortgage Advice service in York
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