Wandsworth Council is launching a new homeownership scheme which would give people the chance to buy new family sized homes at cost price.
Under the proposals, which have been drawn up by Wandsworth Council, a 3-bed home costing £400,000 on the open market could be offered to working households in the local area for just £210,000.
This would be achieved through providing the buyers with a repayable interest free equity loan which could be up to half the property’s full value. The size of each loan offer would depend on household income.
Buyers would repay the equity loan when they sold the home. The money would then be recycled.
There would be the option of buying just a share of the property, also at cost price, and then stair-casing up to full ownership, or renting the new homes at a discounted rate while saving for a deposit.
The scheme will be applied to 35 new homes which would be built across two disused sites on the Patmore Estate in Nine Elms, Battersea. One is a former garage block on Parvin Street , the other is a former education centre on Thessaly Road . Both sites are owned by the council.
The council is also looking to deliver up to 20 new properties for low cost rent on the Savona Estate for under occupiers and older council tenants living in the area who want to downsize. This would free up existing family sized council homes in the area for people on the waiting list.
Cllr Paul Ellis, Wandsworth Council’s housing spokesman, said: “In practice this could mean a £400,000 home could be purchased with a £5,250 deposit and at a total monthly cost of around £780. To buy the same flat on the open market you would need a £40,000 deposit and the monthly costs would be around £2,360.”
The council’s proposal is to sell the two Patmore Estate sites to a developer on the condition that they build a specified range of family sized homes which would be made available through this new affordable housing scheme.
The sites are now on the market so developers and social landlords can bid to take the development forward. The council has, subject to due diligence, secured a £875,000 grant from the Mayor to support the scheme.