What is HomeBuy?

HomeBuy is a government-funded low-cost home-ownership programme that offers several schemes aimed at helping first time buyers, key workers and others who cannot afford to buy a suitable home in the area where they live or work.

For many people, this program will provide the best chance of owning or renting a home in the area in which they want to live and work.

What is a Homebuy Agent and who are Catalyst Housing Group?

The Council work with |Catalyst Housing Group, the government appointed Homebuy Agent covering Elmbridge and the rest of Surrey, to promote the HomeBuy initiative and all the available options. Catalyst is a professional "non-profit" organisations which has been selected as a specialist in the area of providing housing solutions.

There are three core parts to the HomeBuy program:

1. Shared Ownership
2. Equity Loan Schemes
3. Intermediate Rental Schemes

Shared Ownership

NewBuild HomeBuy

This is also known as 'Part-buy/Part-rent'. Under this initiative, eligible individuals are able to become home owners by buying a share of a newly built property (from as low as 25%) and pay a subsidised rent on the portion they don't own.

The total monthly payment should be less than would be the case if you were purchasing the property fully on the open market. You can buy further shares when you can afford to. This is a process known as staircasing. When you buy the property outright, no further rent is payable. In very general terms, single person households would need an income of around £23,000 plus, whilst couples would need an income of £27,000 plus. These are however rough guidelines and can vary between different schemes, depending on location and such like.

|Catalyst can provide you with details of the developments in Elmbridge and across Surrey which include "part-buy, part-rent" homes for sale. More details on 'part-buy/part-rent' schemes in Elmbridge can be found elsewhere on this website.

From time to time 'part-buy/part-rent' properties will become available as a result of existing owners moving further up the property ladder. These are known as 're-sale' properties. Again, a link to details on resale opportunities within Elmbridge can be found at the bottom of this page.

Equity Loan Schemes

HomeBuy Direct

This was officially launched in April 2009. The buyer buys a new home, on a designated HomeBuy Direct development, with assistance from the Government and the housebuilder in the form of two equal interest-only loans.

The equity Loans would total up to 30% of the purchase price leaving the applicant to raise 70% by way of a mortgage plus a deposit, if available. (Note: a deposit may not always be required).

There are no loan payments for the first five years. At year six, you would pay 1.75% "interest-only". This is divided into 12 monthly payments. This charge rises annually by an amount in line with the Retail Price Index (RPI) plus 1%.

There is an option to make part or full repayment of the equity loans ('staircasing') after twelve months.

The purchaser will be the legal owner with full title to the home and can sell it on the open market without restriction.
There are no HomeBuy Direct Developments in Elmbridge at the present time, but there are several schemes in neighbouring boroughs, details of which are available from |Catalyst.

First Time Buyer Initiative (FTBI)

This initiative only applies to specific developments and allows first time buyers to fund from just 50% of the proposed purchase. The Government will then fund the remaining share. For the first three years there is no interest charge on the Government funded portion. After this time a nominal staggered interest charge is applied. There is an option to repay the loan in instalments of 10% after the first 12-month period.

There are no First Time Buyer' Initiative developments in Elmbridge, but there are several schemes in neighbouring boroughs, details of which are available from |Catalyst Housing Group.

The First Time Buyer Initiative is now in its final stages and will be replaced by HomeBuy Direct.


Intermediate Rent

This option offers properties to rent on assured-shorthold tenancies at a rents which are no more than 80% of open-market rents. All the intermediate rented schemes currently in Elmbridge are restricted to key-workers and the properties are owned and managed by housing associations. In other places, intermediate rented schemes are not restricted to key-workers. Again, more details on housing associations which offer intermediate rented properties within Elmbridge are available elsewhere on this website and details on vacancies across Surrey are available on from |Catalyst.

Rent to HomeBuy

Under this scheme, referred to as "Try Before you Buy", eligible individuals are able to rent a newly built home provided by a Housing Association at a rate that is normally 80% of the current market rate. Depending on the development the individual has the option to convert the rental agreement into shared ownership (part-buy/part-rent) after a period of 3 years to 5 years.
There are no Rent to Homebuy schemes in Elmbridge, but there are several schemes in neighbouring boroughs, details of which are available from |Catalyst.

Other Options

Social HomeBuy

Is an initiative where housing association and local authority tenants are helped to buy their current home. This is likely to be of interest to tenants who don't qualify for the 'Right to Buy' or 'Right to Acquire'.

Interested parties should contact their landlords to see if they are participating in this scheme.

Eligibility Considerations

To be eligible for any of the HomeBuy home-ownership schemes candidates must fit into one of the following criteria and must NOT have a household income in excess of £60,000 per annum:

a) First time buyers

This will be subject to qualifying criteria.

b) Key workers

As defined by the Home and Communities Agency (HCA). Likely to include those working in the public sector in health, education or community safety - (such as teachers, nurses, social workers and police officers) in areas where high house prices are affecting recruitment and retention.

c) Social housing tenants and those on the housing register

Tenants of councils and housing associations and those who are on the Elmbridge Housing Register.

d) Those who have had a major change in circumstances

Current or previous home owners who are looking for a new property as a result of a major change in their personal circumstances e.g. increase in family size resulting in a need for a larger property, divorce/separation, victim of domestic violence etc. Please note that these are subject to approval by Catalyst.

Other

Those who have previously owned a property, but are not owners at the present time may be eligible to apply. Please ask.

So if you meet these requirements what should you do now?

You should register with Catalyst Housing Group by telephone 0845 601 7729 or complete an online application at |catalysthomebuy. More details about the available options and schemes are available on the website.

Please note you do not have to be on Elmbridge Borough Council's Housing Register to be considered for any of the schemes, if you meet any of the other criteria.

What happens next?

Once on Catalyst Housing Group's Homebuy Register, you will: -

• Receive a letter confirming your eligibility and outlining the level of assistance you are likely to receive. Note: This will be sent by Thames Valley Housing Association if your interest is specifically in the MyChoice HomeBuy product.
• Be kept up-to-date with the latest Government initiatives
• Receive marketing details of any suitable new affordable housing schemes that are being developed in the District.
• Receive details of re-sales of existing shared ownership properties,
• Have access to any other HomeBuy options promoted by Catalyst and advertised through the HomeBuy website, subject to any eligibility criteria.

For developments where there is high demand, it is really important that you keep your Catalyst application up to date if there are any changes to your circumstances