ISLANDERS struggling to get onto the property ladder can now apply for government funding through a new £10 million shared-equity scheme that the Housing Minister hopes will have a “knock-on” effect on market turnover.
Deputy Sam Mézec has launched the “First Step” assisted home ownership scheme, which was announced by his ministerial predecessor – Deputy David Warr – in September.
The scheme is being delivered in partnership with Andium Homes and will enable eligible Islanders to access a government contribution of up to 40% towards the purchase of an open-market property.
It will focus on existing properties instead of new builds and is also limited to first-time buyers, who will need to provide a 5% deposit towards their purchase – and be able to access the maximum lending available to them from one of the scheme’s partnering mortgage lenders.
The amount of deferred payment offered will be based on a financial review of the prospective buyers’ finances.
Deputy Mézec said an estimated 60 households could benefit from the First Step initiative, which utilises £10m of funding previously earmarked in the 2021 Government Plan, but that it could have a “knock-on effect in the wider market” by increasing turnover.
According to the latest House Price Index, the overall turnover of properties for 2023 (843) was 43% lower than it was in 2022 – the lowest annual turnover for at least two decades.
Deputy Mézec added: “It [First Step] will also help those people who are looking to move on into their second home but have been struggling to find buyers, to enable them to do that.
“So hopefully it will generate more turnover, beyond just the 60 homes that we are looking at.”
He continued: “If we can demonstrate that it is successful and does have the impact that we hope it will, I will be going to ministerial colleagues and asking for more funding for it so we can repeat it next year.”
Islanders who are not already registered with Andium’s Assisted Purchase Pathway waiting list are being encouraged to submit their details before applying for the First Step scheme.
There will be three rounds of applications, the first of which is open from today [29 February] for four weeks until 2 April – when Andium will assess applications and notify successful applicants.
Two further rounds of applications will take place in July and September.
Deputy Warr said: “Throughout the summer of 2023, my team developed the “First Step” scheme. It recognises that huge gulf in affordability experienced by many. Although this is a pilot scheme that will help around 60 families in the first quarter of 2024, I have high hopes that this is a way for some who thought they may never have a home of their own to make that first move.”
Islanders wishing to join the Assisted Purchase Pathway, or those wanting to update their details, can do so via andiumhomes.je/assisted-purchase-pathway.
FACT BOX
Household gross annual income limits to qualify for support through Assisted Purchase Home Ownership schemes
1-bedroom flat: £65,000
2-bedroom flat: £85,000
2-bedroom house: £105,000
3-bedroom house: £125,000
4-bedroom house: £135,000
