In Cumbria, various schemes are available to assist first-time buyers and others looking to purchase a home. These schemes, like those in other parts of the UK, are designed to make homeownership more affordable and accessible.
Here’s a breakdown of the Help to Buy and related schemes available in Cumbria:
1. Help to Buy: Equity Loan
- Eligibility: Available to first-time buyers purchasing a new-build home. In Cumbria, the property price must not exceed the regional price cap of £224,400.
- How It Works: With a minimum 5% deposit, the government provides an equity loan of up to 20% of the property’s value, which is interest-free for the first five years. Buyers then need to secure a mortgage for the remaining 75% of the property value.
- Popular Cumbria Locations: This scheme applies to new-build homes across Cumbria, including areas like Carlisle, Penrith, and Kendal.
2. Shared Ownership
- Eligibility: The Shared Ownership scheme is for first-time buyers or those who used to own a home but can no longer afford to buy. It is also available to individuals with an annual household income of less than £80,000.
- How It Works: Buyers purchase between 25% and 75% of a property and pay rent on the remaining share. Over time, you can increase your share through “staircasing” until you own 100% of the property.
- Popular Cumbria Locations: Shared Ownership properties are available in various developments across Cumbria, particularly in more urban areas like Carlisle and Workington, and in rural villages.
3. First Homes Scheme
- Eligibility: This scheme is designed for first-time buyers and key workers with a strong local connection to the area.
- How It Works: First-time buyers can purchase new-build homes at a discount of 30% to 50% off the market value. This discount remains on the property for future sales, ensuring the homes remain affordable for future buyers.
- Popular Cumbria Locations: The First Homes Scheme is becoming available in new developments in growing towns such as Penrith and Kendal, as well as smaller rural areas.
4. Help to Buy: ISA (Closed to New Applicants)
- Eligibility: While closed to new applicants, those who opened a Help to Buy ISA before November 2019 can still claim the government bonus when buying a first home.
- How It Works: The ISA savings accumulate with a government bonus of 25% on savings, which can be used for a deposit on a home priced under £250,000 in Cumbria.
5. Local Authority and Housing Association Schemes
- Eligibility: These schemes are typically aimed at low-income buyers, key workers, or those with specific needs. Eligibility and terms vary by local council.
- How It Works: Local councils in Cumbria, such as Allerdale, Eden, and South Lakeland, often run affordable housing schemes, which may include rent-to-buy options, discounted sales, or specific homeownership programs for local residents.
- Popular Cumbria Locations: Affordable housing schemes are available across Cumbria, including in both rural and urban settings, with particular availability in places like Barrow-in-Furness and Carlisle.
6. Rent to Buy
- Eligibility: The Rent to Buy scheme helps renters transition into homeownership. It’s available for individuals who cannot afford to buy right away but intend to purchase in the future.
- How It Works: Participants rent a property at a reduced rate, typically below the market value, for a set period (usually five years). During this time, they can save towards a deposit. At the end of the period, they have the option to purchase the home.
- Popular Cumbria Locations: Rent to Buy properties are becoming more common in Cumbria, particularly in areas experiencing growth, like Carlisle, Whitehaven, and Workington.
7. Discounted Market Sale
- Eligibility: Some local authorities in Cumbria offer Discounted Market Sale schemes, which make properties available at a reduced price to people who live or work in the area. This scheme is typically aimed at first-time buyers or key workers.
- How It Works: Properties are sold at a discounted price (usually 20%-30% below market value), making them more affordable for eligible buyers. The discount is retained on future sales, ensuring continued affordability for future purchasers.
- Popular Cumbria Locations: Discounted Market Sale homes are available in specific developments across Cumbria, including in more rural areas like the Lake District or larger towns such as Carlisle and Penrith.
Examples of Developments Offering Help to Buy and Affordable Homes in Cumbria
Some examples of developments in Cumbria where Help to Buy and other schemes may be available include:
- The Laureates, Cockermouth – A development of family homes offering a mix of 2, 3, and 4-bedroom homes near the Lake District.
- Fairways, Penrith – A new-build development offering family homes with access to the Help to Buy: Equity Loan scheme.
- St. Cuthbert’s Place, Carlisle – A collection of new homes ideal for first-time buyers looking to benefit from Help to Buy or Shared Ownership.
Contact details for the Help to Buy agent for Cumbria.
Tel: 0300 790 0570
Email: enquiries@helptobuyagent1.org.uk
Is Help to Buy Right for You?
Whether you’re interested in a new-build home in Carlisle, Penrith, or a picturesque village in the Lake District, Cumbria offers various schemes to help you get on the property ladder. Be sure to explore local authority housing options and speak with Help to Buy agents or housing associations to find the best program for your situation.