Dandara and Hartford Homes partner with private company, Own Homes
Two housing developers on the Island have joined a scheme offering a new rent-to-buy option for first-time buyers.
Hartford Homes and Dandara have partnered with Own Homes in the hope of addressing the challenges many people are facing getting on the property ladder.
The scheme was created for those who would be able to afford the monthly mortgage repayments, but aren't able to save up the necessary deposit.
Own Homes will be the owner of the property until the buyer is in a position to purchase it.
The monthly payment and eventual purchase price are agreed at the outset, with part of each monthly payment being set aside towards a deposit.
It's hoped the potential owner can then buy it outright within five years.
Own Homes is a private company founded by Isle of Man-based housing specialist, Chris Lee.
He spent five years running the UK Government's Help to Buy: Equity Loan scheme in England, and founded Own Homes to try and help tackle some of the problems facing first-time buyers.
Chris says: "I live on the Isle of Man, so I see this issue first-hand.
"There are many people with good jobs and incomes who pay a lot in rent every month but still cannot save enough for a deposit.
"Government schemes are important and can work, but they do not suit everyone. It is also widely recognised that government subsidies in the form of equity loans can have an inflationary impact and prove costly to homebuyers in the long term. Increasing a homebuyer’s purchasing power isn’t the same as creating genuine affordability.
"If we want people to stay on the Island, build careers and raise families here, they need to be able to see a realistic route to owning a home.
"Ultimately, this is about helping more people who want to live and work on the Island put down roots and see a long-term future here."
Hartford Homes says: "There is a group of prospective buyers who can find themselves caught between the support available through the first-time buyer scheme and the requirements of a traditional purchase.
"Own Homes offers another route for those buyers and gives more people the opportunity to work towards owning a home."
Dandara says: "We’re pleased to support initiatives that give local residents more choice in how they move towards homeownership.
"Own Homes provides an alternative route for eligible buyers and could make homeownership more accessible to people who may otherwise struggle to save a traditional deposit."
Major incident declared as crews battled fire
Manxman to re-enter dry dock today
Yellow weather warning for coastal overtopping
Time to 'focus on delivering' says MHK tipped to enter chief minister contest