Chance to get on the property ladder now

Part of a new housing development in Auchterarder includes properties which fall under a new shared equity home ownership scheme launched by Perth and Kinross Council.

Several of the two-bedroom, two-storey homes at Castlemains in the Lang Toon – currently being built by Muir Homes – are available through the project, which has been set up to allow people to buy their own house at a more affordable price.

Perth and Kinross Council plans to secure housing units at a discounted price from developers as part of the firms’obligation to provide an element of affordable housing on any new scheme.

A spokesperson for the local authority explained:“For example, a one-bedroom shared equity house or flat with an open market value of £100,000 in a new development can be secured by the council for £70,000.

“Under the shared equity scheme, the purchaser would pay £70,000 for the property.

“The new owner would have full title to their new home but only 70% of the equity within the property. The council would retain the remaining 30% equity balance share.”

After four years, property owners will be given the chance to buy-out the council’s equity share.

Those eligible include first-time buyers, those with what’s described as “a significant change in household circumstances”, or someone who is disabled and owns a house that no longer suits their needs.

People on a moderate income – who can demonstrate their gross annual income is insufficient to purchase a property to meet their needs unaided on the open market – can also get involved.

If a property is sold while the council still holds equity, the local authority will have a chance to buy it at open market value, discounted by its equity share.

The local authority may then nominate a new purchaser who meets the shared equity scheme criteria.

Councillor Dave Doogan, convener of the housing and health committee, declared:“This innovative new scheme is another way we can help local people into high-quality affordable housing.

“It will give a leg-up to first-time buyers who may not be able to afford to buy a home under normal circumstances, and to people who need to move home to suit their circumstances but can’t quite afford a new property.

“In many cases the council will retain affordable units that are built in new developments for social rental.

“However in some of the bigger developments happening across Perth and Kinross, the number of affordable units that are available to us is high. This means we can split them between social rental and this new shared equity scheme.

“This is an excellent way to give people access to the housing they need at an affordable price.”

For details on how to apply for the shared equity home ownership scheme please email JAKent@pkc.gov. uk or call 01738 474540.