The scheme is designed to get first time buyers onto the property ladder by purchasing a home on the open market, within certain areas, for 75 per cent of the asking price.
While many of the estate agents questioned were aware of shared ownership, over half had never heard of the government’s Homebuy scheme.
The survey carried out by Plumlife, part of Manchester-based Housing Association, Manchester Methodist Group (MMHG), found that 89 per cent of estate agents questioned admitted that ‘there is still some confusion around Homebuy and other low cost home ownership schemes within the industry’.
Amongst the estate agents questioned, only 43 per cent had heard of Homebuy and only 1per cent had ever marketed any properties through Homebuy. 90 per cent of the Estate agents questioned had heard of Shared Ownership schemes, however only 26 per cent of these agents had or were marketing properties through shared ownership.
Despite their confusion over Homebuy and Shared Ownership, 87 per cent of those questioned believed that these schemes were the way forward to help first time buyers get a foothold on the property ladder. As one respondent noted ‘we’d welcome any scheme that gives first time buyers a helping hand.’
Matthew Harrison, deputy chief executive at Manchester Methodist Housing Group (MMHG) said: “We believe this survey confirms the need for greater awareness amongst some estate agents about the range of options for first-time buyers, which may be resulting in a number of first time-buyers and qualifying households being unintentionally frozen out of perfectly decent and affordable homes in good neighbourhoods.”
Both shared ownership and Homebuy are government-backed schemes designed to help first time buyers onto the property ladder. However, unlike shared ownership, those purchasing through Homebuy do not pay any rent or fees on the un-owned share.
Funded by the Housing Corporation and offered by many Housing Associations/Registered Social Landlords, Homebuy enables applicants to purchase a property for 75 per cent of the asking price while the remaining 25 per cent is provided by the Housing Association in the form of a no-interest loan.
Plumlife is offering training and advice to local agents and advisors in the Greater Manchester area to dispel any confusion and raise awareness of Homebuy.
Harrison said: “We think there should be some provision for training within the industry, to ensure that first-time buyers are made aware of Homebuy and shared ownership schemes, some of which are often on their doorstep.”
“The affordable housing industry has worked hard over the past few years to dispel certain myths about shared and affordable home ownership, including the perception that these type of properties are second rate or built in areas of serious decline,“ he concluded.
