You Can Now Buy A House With Just A £2,000 Deposit
If you're of a certain age, you will know all too well how bloody hard it is to save for a home of your own.
Well, taking that first step onto the property ladder may now be that little bit easier as the government has announced a change to the shared ownership rules - meaning you can now get a home for £2,000.
Under the current regulations, the minimum share a person can buy in a property is 25 percent, but under the recent changes you could invest as little as 10 percent.
Changes to the scheme were announced at the Conservative Party conference last month by the housing secretary Robert Jenrick.
However, the Ministry of Housing, Communities and Local Government has since confirmed the new measures.
According to the government body, dependent on where you are looking, buyers will only need a couple of grand for a deposit.
So how does it work?
Well, at the moment, for a house valued at £200,000 a 25 percent share would cost £50,000, which would mean a £5,000 deposit. This would then require a mortgage of £45,000.
But following the changes, the same property would only require a deposit of just £2,000 - leaving a mortgage of just £18,000.
As well as this, the rule changes also means buyers will be able to staircase - the option to buy more shares - one percent at a time compared to the current minimum of 10 percent.
According to reports, this means potential homeowners will be able to increase their share using their savings without the need to obtain a larger mortgage.
As part of the move, the government also promised to "cut the fees charged" to staircase, such as legal fees, mortgage fees, surveys, and stamp duty.
However, there is a catch, the new regulations will only automatically apply to new housing association properties, and associations will have to voluntarily sign up to the rule in order to help current tenants.
The government has also pledged to "make it easier" for people to sell their shared ownership homes, which can be hindered by the housing association's "right of first refusal". However, it is not yet clear how this will done.
Speaking about the new rules, Mr Jenrick said: "Owning a home is not just about the four walls around you, it's about investing in your family, saving for the future and putting down roots in a community.
"These measures will mean more people, including residents living in new housing association homes, are given the opportunity to get on to the housing ladder."
Featured Image Credit: PA