Affordable housing
First Steps to home ownership in London
First Steps is the free government
service for London’s first time buyers looking to buy a home for
less than on the open market. With options available to
buy or rent a home through over 40 of our partner housing providers
across London, you could be taking your First Steps sooner than you
think.
How do you know if you are eligible?
Generally, you must meet the following
criteria to be eligible for First Steps:
- Your household income is less than
£60,000 a year.
- You are a first-time buyer, or a
homeowner who needs to move because of a change in your family’s
circumstances (in which case you must sell your existing
property).
Priority will be given to applicants living in
London who are:
- Social tenants - council and housing
association tenants
- Serving MoD personnel
(Uniformed)
- From one of the priority groups as
defined by the Local Authority
What are your options?
First Steps - Buy
First Steps - Rent
How do I apply?
To find out more and search for your new home
visit http://www.firststepslondon.org
or call 0845 230 8099.
Shared Ownership
With First Steps Shared Ownership,
you buy a brand new or resale home with a mortgage on a share in
that home starting at 25% of the home’s full market value. You will
also pay a rent, which is initially capped at a maximum of 3%, on
the part owned by the housing provider. First Steps Shared
Ownership is designed so that your monthly housing costs will be
approximately 20% lower than if you were to buy the home outright
on the open market or rent it privately.
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Resales
First Steps Resales are usually
previously owned Shared Ownership homes that were built and sold in
the past and are now being sold on a part-buy, part-rent basis by
their current owner. First Steps Resales vary in
location, age and design and provide an opportunity to buy an older
property in an established community.
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FirstBuy
First Steps FirstBuy is an equity loan
product which gives you the opportunity to buy a new home with the
help of up to 20% of the full purchase price. The FirstBuy equity
loan will be interest free for the first 5 years with a charge
payable from year 6. FirstBuy is available at developments
across London from a range of developers building homes in the
capital.
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HomeBuy Direct (HBD)
With HomeBuy Direct, you can buy a newly built
home on a designated selected development with the help of an
equity loan. Your mortgage, savings and any deposit required must
fund a minimum of 70% of the total purchase price; the remainder
will be paid for with an equity loan of up to 30% of the total
purchase price. For the first five years of home ownership there is
no fee charged on the equity loan, from the start of year six a
charge will be payable.
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Home Ownership for people with Long-term
Disabilities (HOLD)
HOLD is not a separate product but the route
into Shared Ownership for eligible disabled people. You will
need to have an income sufficient to be able to raise a mortgage
through a high street lender or purchase a share with a lump
sum.
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Older People's Shared Ownership (OPSO)
OPSO is a shared ownership scheme for people
over the age of 55. The scheme lets you own a home without having
to buy it outright - enabling you to live independently with the
reassurance of 24 hour emergency assistance.
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First Steps Rent to Buy
Rent to Buy offers the opportunity to rent a
newly built home on an Intermediate Rent basis; allowing you to
rent a home at a rent which is charged at approximately 20% lower
than you would expect to pay for a similar home on the open market.
You can do this for up to five years with the option to buy the
home through First Steps Shared Ownership when you are ready to buy
in the longer term.
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First Steps Intermediate Rent
Through the intermediate rent product, you can rent a brand new
or refurbished home at less than the market rate. The rent charged
is normally 20% lower than what you would expect to pay for a
similar home in a similar area if you were renting from a private
landlord and you have the assurance that your home is built,
managed and let by one of our partner providers.
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How do I apply?
In order to view properties that you may be
eligible for, you will need to register your details on the
First Steps website.
If you would like to go on to purchase or rent
a property then you will need to complete an application form and
have this approved by First Steps. This can be done by using their
online application form at http://www.firststepslondon.org If
you would like to apply another way, you can contact the dedicated
applications and enquiries team on 0845 230 8099 for an application
form and further information.
For any additional information about home ownership please
contact
The Affordable Housing Team
Mulberry Place [AH]
PO Box 55739
5 Clove Crescent
London E14 1BY
Tel: 020 7364 2531 between 9am – 5pm Monday to
Friday
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