A Sheffield developer will be among the first in England to offer low deposits for new homeowners as part of a government initiative.
Prime Minister Andy Burnham has announced help for first-time buyers with a new scheme that accepts deposits of 2.5%. There are also loans on offer with 20% of the value of a newbuild property to help with the purchase.
Development company Fortuna Terra said their new apartments on Commercial Street in Sheffield city centre would be available via Your First Home.
The developer decided to take part as it found many prospective buyers were relying on parental help to raise a deposit, despite their salaries being high enough to cover mortgage repayments.
Founder and development director Freddie Porter said: “People have been so reliant on the ‘Bank of Mum and Dad’, and are finding it more and more difficult to afford things with the cost of living.
“A lot of people can actually afford home ownership, they just can’t afford to save for the deposit. Rents are really high and a mortgage is possible for a lot of people, but what’s challenging is saving for the deposit.
“The government’s current Help to Buy scheme offers 5% and but this is 2.5% and that saving could be huge for some people.
“Home ownership is something we should all be able to afford, so this potentially saves years for new buyers to get on the housing market.”