The Chancellor of the Exchequer, announced this shared equity housing finance initiative as part of the spring 2007 Budget. This aims to provide a wider choice of shared equity loans for home buyers.
To achieve this, the Housing Corporation is inviting proposals from a wide range of organisations, including mortgage lenders, developers, institutional investors and housing associations. The initiative offers an opportunity for the market to engage with the Housing Corporation to create innovative and viable financial products to deliver affordable home ownership.
Shared equity finance mechanisms typically enable people to buy a home by utilising third party equity funds. On the sale of the property the third party equity is repaid with a percentage of the profit from the sale of the property going to the third party equity investor.
The Housing Corporation is seeking to select financial partners and will commit significant funding to this initiative.
CB Richard Ellis has been appointed to market and manage the initiative and evaluate proposals for new private sector investment into the shared equity market.
