Life: Affordable Housing?

As a young professional living in London, you would think it would be quite straightforward to become a 1st-time buyer...WRONG!

It's been a number of years since the UK Government introduced shared ownership and "affordable housing" schemes  but they're not as friendly as they sound.

• Deposit- 5%
• Mortgage
• Service Charge
• Solicitor fees
• Stamp duty
• Minimum salary
• Credit score
• Preferences for people who live/work in the borough

Firstly, let's look at these new builds which are propping up almost everywhere. 

These are NOT "affordable" unless you earn over on average £38,000 a year (Min).

Oh yes!

I have done my research into this! I have been looking for the last 3years and I kid you not, it's a JOKE!

I have seen a few developments priced at well over £500k where you need a deposit of OVER £28k and a minimum salary of £42k pa for a 1-bedroom box!

I don't know about you but that doesn't seem like a scheme fit for those who cannot afford a mortgage. And even so, who wants to live in a box in a basement under a shop?

Who are these schemes affordable to?

Ok, so minimum salary knocks a lot of people out of these schemes, what else...

Oh yes, Rent!

Rent on your 25% share is on average £1200 per month for a 1bedroom flat in south-east London.

So...your salary makes you ineligible and then even if you find a RARE property with a low min salary the rent will be ludicrous for a pathetic share of a property you'll probably never be able to own due to staircasing rules and regulations. And the fact that you have no savings as you're now living to pay rent, service charge (which increases as the housing provider sees fit), council tax, bills, travel etc means you cannot afford to save money to buy more shares!!!

All in all I think these schemes are not meant to help people on low incomes at all!

They're designed for the middle to upper class who wish to roll out of bed into a train station to go to their city job where they most likely get £60k+ a year to do little or nothing OR those who want to buy to let for a second income (Internationally buyers too). 

Don't get me wrong! I'd love to buy to let, roll out of bed into work where I get paid stupid money to do little to nothing but that is not the situation for many people who turn to these schemes to get on the housing ladder and better their personal circumstances.

These schemes are advertised for people on low incomes....well what is a low income to these clowns?

If £40k a year is low then a lot of people will never have their own homes and be forced into uncomfortable, overcrowded and poor quality homes.

But hey as long as money is coming into the economy, who cares...right?

Certainly not the UK Government!

@MsShayDivine