1. Increasing Access to Home Ownership in Barnet Brian Reynolds Deputy Chief Executive London Borough of Barnet

2. Providing greater choice and increased access to low-cost home ownership Meeting the needs and aspirations of older people Continue to tackle homelessness and reduce the use of temporary accommodation Reviewing the Housing Strategy

3. Housing Needs Survey - shortfall of 5,148 affordable housing units per annum Research shows that most people aspire to own their own home 40% of first time buyers buy with help from family/friends Housing Needs

4. Social Homebuy Scheme for Council Tenants Cash Incentive Scheme Shared Ownership Discounted Market Sale First Time Buyers initiative Housing Advice for potential owners Ownership Options in Barnet

5. Allows existing tenants to acquire an equity share in their own home Minimum share 25% Landlord can charge up to 3% on retained equity Barnet Scheme: –Keeps rent low at 2.5% of equity –Major repairs charges pro-rata for first 5 years Social Homebuy Scheme

7. Provides a cash grant to help tenants buy a property on the open market 18 tenants moved under scheme in 2006/7 2-5 years tenancy 2+ bedrooms£18,000 5+ years tenancy 2 bedrooms £26,000 3+ bedrooms £29,000 Cash Incentive Scheme

8. Government funded part-buy/part-rent scheme, operated by Housing Associations Allows people to buy a minimum 25% share in a home and pay a subsidised rent on the remainder 33 shared ownership sales, including both new build and existing properties, were completed in 2006/’07 The properties included 3 x 3 bed, 21 x 2 bed, 7 x 1 bed and 1 studio Shared Ownership

9. Source – Barnet Housing Needs Survey 2006 Shared Ownership - Access

10. Shared Ownership - Money

11. Available via St George only The purchaser pays 80%; the discount is protected by a covenant on the property, held by the Council Thirteen applicants are so far purchasing under this scheme The planned provision is for 240 homes Discounted Market Sale (DMS)

12. Tenure Total HouseholdsUnable to affordAble to Afford % Unable to afford Affordability of low-cost market housing at no discount by Tenure Type Council11,00810,9723699.7% RSL6,034 0100.0% Private rented20,37019,3271,04394.9% TOTAL37,41236,3331,07997.1% Affordability of low-cost market housing at a 20% discount by Tenure Type Council11,00810,9723699.7% RSL6,034 0100.0% Private rented20,37019,3271,04394.9% TOTAL37,41236,3331,07997.1% Affordability of low-cost market housing at a 30% discount by Tenure Type Council11,00810,9218799.2% RSL6,0345,9775799.1% Private rented20,37018,4911,87990.8% TOTAL37,41235,3892,02394.6% Discounted Market Sale

13. Mortgage Multipliers 1 Earner = 3.5 2 earners = 2.9 Barnet HNS 2006 Affordability – Discounted Market Sale

14. Launched on Beaufort Park for 50 new build apartments 5% cash deposit + mortgage to at least 45% of value, with nothing to pay on balance for first three years Currently 31 buyers purchasing under this scheme First Time Buyers Initiative (FTBI)

15. SchemeH/Holds Helped Shared Ownership33 Open Market Homebuy11 Discounted Market Sale13 First Time Buyers Initiative31 Right to Buy22 Right to Acquire6 Cash Incentive18 Total134 Target by 20101000 Housholds securing low cost home ownership in 2006/7 Households securing low cost home ownership in 2006/7

16. There are currently 324 shared ownership properties with planning permission It is anticipated that 510 low cost home ownership properties will be built on the regeneration estates 227 Discounted Market Sales properties will become available and a further 19 FTBI properties Cash incentive is programmed at 20 per year, while other schemes are subject to demand This results in a future supply of at least 1080 new build low cost home ownership properties Future Supply

17. Booklet developed for those wanting information about home ownership Reaching out: community events; Sharia Mortgages Working with Barnet Homes to provide more advice for council tenants Advice

18. Discounted Market Sale provides a simpler product and an opportunity for some people at the higher end of the intermediate market to purchase Shared ownership provides an opportunity for more people to access homeownership, but rents need to be kept as low as possible as property values increase Need new, simple products Need to tackle higher interest rates for low cost home purchasers Conclusions

19. Your response How much do you know about your tenants’ aspirations (and capacity) for home ownership? What range of low cost home ownership products are available to tenants in your local area?