By Lauren Monaghan, Junior Local Democracy Reporter
Broxtowe Borough Council is set to roll out shared ownership properties for the first time.
The authority wants to increase the opportunities for people in the borough to get on the housing ladder.
The first properties the council will have available for shared ownership are at Field Farm in Stapleford, with further opportunities to buy more properties later in the year.
Shared ownership enables people to buy a share of a property whilst paying rent on the remaining share, allowing for a smaller deposit and mortgage and being an affordable option for people to get on the property ladder.
Some of the eligibility requirements for shared ownership are that an applicant must be at least 18 years old, be unable to purchase a property to meet their needs on the open market, have a local connection to the council and have a household income of £80,000 or less.
Homes for shared ownership will usually be built by developers through 106 agreements – deals agreed with councils to provide money and facilities back to a community when a new housing project is built.
During a cabinet meeting Cllr Vanessa Smith (Lab) said: “I’m quite excited about this and we’ll be taking ownership on some of those fairly soon.
“They’re giving people an opportunity to get on the housing ladder where they might not have been able to previously.”
There were concerns over the extra fees shared owners will have to pay for their property.
Cllr Philip Owen (Con) said: “What concerns me is the management and administration fees and service charges and there seems to be no indication as to how, and at what level, they will be fixed and what control or say shared owners will have in those charges.
“I was hoping we were moving away from this sort of thing.”
Councillors were assured that any increases in fees and charges will be regularly reviewed.
One key change being brought in for shared owners is the ability to claim back some repair expenses from the council.
Within the first 10 years of shared ownership, residents can claim back up to £500 each year from the council for repairs covering essentials such as water, gas, electricity, pipes, drainage and heating water.
After the 10-year period, full responsibility for essential repairs is transferred to the shared owner.
Cllr Milan Radulovic (Lab), Chair of the Cabinet and Leader of the Council, said: “Shared ownership is a particular way forward, there’s two large sites coming forward in the south of the borough.
“We’ll be looking at [the shared ownership] policy very carefully, looking at the impact it has on opportunities for people, particularly young couples, to get on the housing ladder.
“For us it’s a great step forward, something this council can be immensely proud of and we home those young families take advantage of it.”
Buyers will purchase an initial share between 10 to 75 per cent, with rents set at 2.75 per cent per year of the remaining, unsold share.
Any applicant will be referred to an independent financial advisor for an assessment to check their eligibility and affordability.
