Top

New Hawkwell Homes “Out of our Reach” is quite true

September 30, 2013 by  

Share this...
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

echo hawkwell 300913

The Echo published an Article today headed “Hawkwell homes “out of our reach”.

You can read it here.

 We have approximately 600 registrations on the Council’s Housing Register in a hierarchy of bands that are eligible for housing in our District.

 We hoped that the 35% Affordable Homes, presumably sold at rock bottom prices to Registered Social Landlords (RSL), would enable some of those residents that are on the Rochford District Council Housing Register to be housed at last.

 Councillor Keith Hudson, in charge of planning at Rochford, said to the Echo that he expected first time buyers would look to buy at the site, but would encourage people to use the shared ownership options available as a way of getting on the housing ladder. He added: “It’s an excellent way to get on the ladder. You share the burden with the housing association.“You can have a shared equity situation where you can buy a percentage of the property, and then pay a smaller amount of rent.”

 HERE IS THE WHOLE STORY.

 What Councillor Hudson did not say was how few of the Affordable Houses were available to be sold with “shared ownership”.

 It is only 20%. …………………….  Only 20% of the 35% Affordable Housing 

 Putting this into perspective this means for Hawkwell 20% of 62 Affordable Houses making just 12 available for Shared Ownership.

 Of the 35% Affordable Housing the rest, 50, are for rent only.

 According to Council Officers the Shared Ownership will be 50:50.  So, on a property of £300,000 a first time buyer of an Affordable Home would have to raise a Mortgage of £120,000 (80% of £150,000) and provide a cash deposit of £30,000 as the Government Help to Buy Scheme for 5% will not apply, plus continue to pay rent on the other 50%.

 “Out of our reach” is quite true.

 Buying a new home direct from a developer under the Government “Help to Buy Scheme” you look at, even with the 5% cash and the remaining deposit of 15% Guaranteed by Mr. Cameron announced today, you still need an 80% Mortgage.  Even with a property costing £300,000 you still need a Mortgage of £240,000.  Plus £45,000 provided by the Government on the 15% Deposit making a 95% Loan of £285,000. Can young adults with or without  University Debts of £ 20,000 – £40,000 EACH afford a Loan of £285,000 on top?

 How can these new houses be for our kids?

 “Out of our reach” is quite true.

Share this...
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

Comments

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Bottom