Council's Home Buy scheme

SDC’s new HomeBuy Initiative launches this month - it is aimed at reducing the shortage of affordable housing. HomeBuy grants [interest-free equity loans] will help those who can’t afford the full cost of buying. Eligible applicants can buy a new home, or find one on the open market, and will need to fund at least 75% of the price using Mortgage and savings.

The HomeBuy grant covers up to 25% and there are no monthly repayments - but the equity grant must be repaid when the home is sold - or the purchaser can stay-put and buy-out the 25% grant. When a HomeBuy grant is repaid, the cost of the property is likely to have risen, so the individual benefits from 75% of the increase. The council’s HomeBuy budget is being called a Legacy Fund because when it is repaid, the original 25% investment is likely to have increased in value, and will be available for future reinvestment.

Gloucestershire Housing Association will run the scheme for SDC, using the Legacy Fund budget of £1.7m to provide up to 60 x HomeBuy grants over 2 years. The Association has set-up a special website that covers the different kinds of affordable home ownership schemes, including Stroud’s HomeBuy Initiative. People who are interested in the schemes do not need to be on the Council’s Housing Register. For more information or to check eligibility and apply online, go directly to the website at www.homebuy-southwest.co.uk

The website doesn't seem to have one other option which is being explored locally - for the Cashes Green Hospital site - that of Mutual Home Ownership. The Community Land Trust website has a paper that explores what they see as the differences between Mutual Home Ownership and Home Buy. Certainly much, much more is needed to tackle the issue of affordable housing. One key issue Greens have pushed for is an increase in the percentage provision of affordable housing in new developments - read more on the Glos Green party website.