Ask the Experts: The estate agent

LP, by e-mail

Getting first-time buyers on to the property ladder is a hot political topic. Last month, the government announced plans to expand homeownership schemes, primarily for key workers and others on lower incomes.

In today’s softening market, and with the imaginative schemes some lenders are willing to consider, you may well be able to borrow more than you thought. Look at new-build schemes where developers struggle to sell the smaller units and will discount. Again, bear in mind that some housebuilders offer deals where they’ll pay your stamp duty land tax or 5% of the value as a deposit, and may throw in white goods, carpets and curtains.

The most popular homeownership schemes are run either by developers looking to shift undersubscribed blocks or by registered social landlords, who run shared ownership schemes controlled by local housing associations or trusts. Access to these schemes is means-tested and by interview. They are heavily oversubscribed and have long waiting lists. As well as paying a mortgage on your share, you may have to pay rent on the portion you don’t own. Shared- ownership schemes run by housebuilders can be a better bet as they don’t charge rent on the outstanding portion, but you will have to invest at least 75%. Another option is to club together with friends, although you’ll have to apply separately for finance. With values unlikely to go anywhere over the next year or two, be careful not to overstretch your finances. Two useful websites are www.housingnet.co.uk and www.firstrungnow.co.uk.