It is possible for you to get on the housing ladder quicker by following the housing association route. They can map out a clear path to home ownership.
Affordable rent with a housing association
It is always a struggle to pay your rent when you get your first job. Many will stay at home and pay rent to their parents. There are those who venture out to rent privately. However, how many of you are aware of the ability to rent affordably from a housing association?
They have a variety of properties on offer. Yes, there are social rent properties for those most in need. However, you will also find many affordable rental properties on offer.
Affordable rentals with no deposits or admin fees to consider
Affordable rent is typically a home that is available at 80% of the market rent. So it should be cheaper than a similar property that would be on offer in the private rented sector. You will also find that nearly all housing associations do not charge rental deposits or administration fees.
Shared ownership as a path to home ownership with a housing association
This means you have more money available to either spend on the property you are renting or to save up for a deposit to buy your first home. If you aren’t already aware, you do have the option to part buy part rent homes from housing associations. This is typically called shared ownership. They can either by new build properties, so you get them from brand new. Or they can be resale homes that are being advertised by the current occupier as they are looking to move house.
If you go for the shared ownership option it means you need less of a deposit as you are only going to need a mortgage for the share of the property you are purchasing. They typically start from 25%. Also, once you have bought your shared ownership home you have the option to buy a bigger share at a later date. This is commonly known as staircasing. In a lot of cases you should be able to own 100%, however you will need to confirm this is possible with the housing association you are looking to buy your home from.
There will also be costs to consider when buying a shared ownership home including mortgage deposit and fees, building valuation survey and solicitors fees. The housing association will be able to provide further details about the costs involved in purchasing a shared ownership property.
Rent to buy as a path to home ownership with a housing association
This isn’t the only way to home ownership with a housing association. Another scheme is rent to buy. This allows you to rent a property and give you first refusal to buy the home after a set period. If you choose to do this then some of the rent you have been paying will go towards your deposit for the home you have been renting.
An affordable path to home ownership
There are different paths you can take for home ownership. Like anything else, it is well worth doing your research. However, you should consider the path to home ownership with a housing association as it may give you the opportunity to get on to the property ladder quicker than you thought you could.
