OwnPlace is streets ahead at helping first-time buyers

With a decline in house-building, the best mortgage deals only available to those with substantial deposits and a rising number of buy-to-let purchasers, the future still looks bleak for first-time buyers.

But the headlines haven’t fazed Colin Auty, 32, who has taken that all important first step onto the property ladder in Wirral with the help of OwnPlace, a scheme by housing association Riverside.

OwnPlace is bringing derelict properties back into use, thus counteracting the decline in house-building; selling properties at a 25% discount, therefore enabling buyers to secure a 75% loan to value mortgage; and incentivising buyers to remain as owner-occupiers for a minimum of five years, therefore preventing investors from pushing first-time buyers out of the market.
Colin, who had been renting for nearly 10 years but didn’t want to be paying rent out of his pension after retirement, has just moved into a three-bedroom terrace in Birkenhead.

He said: “While I could afford a mortgage without OwnPlace, I wouldn’t have been able to get the same standard of property for such a good price. The house is worth over £60,000 but my mortgage is only £45,000.

“I know a lot of people who are over-stretching themselves but I don’t see the point. I would have resented having to sacrifice my standard of living to get on the property ladder.”

Under the scheme, Riverside carries out structural repairs and improvement works to bring empty properties up to a standard which should allow buyers to secure a mortgage.

The properties vary in condition. While some will have been refurbished prior to sale and some will need some redecoration and upgrading, others will require more comprehensive works and are likely to appeal to competent DIYers and those who have access to skilled labour via friends and family.

Colin said: “For anybody who says they can’t be bothered with an OwnPlace property because it requires a bit of effort, I say short-term pain for long-term gain. Yes the bathroom needs some work but the house was fitted with a brand new gas central heating system and double glazing throughout before I moved in.”

OwnPlace is designed not only to give local first-time buyers a helping hand on to the property ladder but also to help breathe new life into neighbourhoods, as well as kick-starting the local housing market.

In return for a 25% discount, buyers must agree to live in the properties for at least five years, or else pay the discount back. They must also agree to live in the houses themselves and not rent them out.

It is hoped these conditions will help revitalise streets blighted by boarded-up properties, buy-to-let landlords and short-term tenants. OwnPlace properties are often grouped together so the improvements made to a number of homes will have a positive impact on the wider area.

Colin said: “Some people may be hesitant about the area but I’ve experienced no problems and am astounded by how quiet it is. It lies within the Housing Market Renewal area so is undergoing regeneration and my neighbours either side are like-minded people who have also bought their properties via OwnPlace.”

OwnPlace currently has properties in Merseyside for sale from £37,500. For more information or to receive an application pack call 0151 343 1170, email enquiries@ownplace.co.uk or visit www.ownplace.org.