Purpose

The purpose of this report is to set
out the rationale to amend the terms of the council’s Own
Home Loan (OHL) scheme to increase the maximum potential purchase
price of a property through the scheme to £300,000, up from
the current level of £250,000.
 

Decision

The decision is:
 

·      
To approve the amendment of the terms of the Own Home Loan scheme
to increase the maximum purchase price of a property from
£250,000 to £300,000.

Reasons for the decision

Increasing the maximum purchase price of a
property purchased through the OHL scheme would widen the pool of
potential buyers and therefore give the council the opportunity to
progress the remaining loans available to first-time buyers within
the borough.

Alternative options considered

Option 1- Retain existing price cap:
Completed purchases through the OHL scheme have remained low since
the scheme was launched and in this time property prices have risen
which has limited the potential pool of buyers through the scheme.
Retaining the existing price cap would therefore exclude many
potential purchasers. Option not recommended.
 
Option 2- Retain existing price cap but
relax eligibility criteria: The initiative was designed to
address local housing needs for those looking to bridge the gap
between their deposit and mortgage offer. Relaxing overarching
income and local connection requirements would therefore go against
the aims and remit of the scheme. Option not
recommended.