The London Borough of Newham has forged a partnership with SiteSales Property Group to provide new housing opportunities for people suffering with prices. The NewShare scheme is unique. The big difference between it and shared ownership is that buyers own 100% of the property from the outset. This is instead of owning a smaller percentage and then having to purchase the rest at a later date.
The NewShare scheme works by providing a percentage of the property ownership under a mortgage and the remaining share by an equity loan from the local authority. The buyers have a year to make arrangements for paying back the sum they loaned, simply paying 1.75% interest in the period. Once 12 months has elapsed the buyers can pay off the loan in instalments or a single lump sum.
The partnership between SiteSales and the local authority dates back to 2015. It has seen the company provide a variety of useful services including advice about planning and developing new homes, sales leads, and marketing support. The ultimate aim is to build and refurbish a total of 1,200 homes, helping to ease demand for housing in the Borough. To date 250 homes have been refurbished and 53 new builds are complete.
NewShare is an interesting approach and could give more local people the chance to get on the property ladder. If it is successful Boroughs across London and local authorities in other parts of the UK could try it.
At Finefair we have spent many years working in the London Borough of Newham and have seen how much demand for homes has increased. We have also seen the good work the local authority has done to help make more properties available. We are pleased to have done our part to help with this by arranging the best council leasing Newham landlords can ask for. We make this option available to investors and advise them on the merits it offers.
If you are a landlord and have any questions about leasing with the local authority please get in touch with us.