An initiative to help low earners buy property in areas where prices have soared has been announced by modular building specialists LiveIn Quarters.
Mini suites, which are fully furnished compact studio apartments, are initially being built in London and will be rented or part-sold to people earning less than £30,000.
Average flat prices in London fetch above £100,000, but the mini suites are for sale at £65,000. Depending on location, the full market value is assessed and LiveIn Quarters owns any equity above the £65,000 mark. Larger suites will be sold on the same principles at £89,000.
Unlike traditional shared ownership schemes through housing associations, no additional rent is charged on the unowned equity for the first five years. Alternatively, mini suites can be rented at £70 a week ‘ or £110 for home suites ‘ including electricity, which will be supplied through a deal with Npower.
Although targeted at key workers in the city, James Wright, chairman, said the company hopes to expand the initiative across the UK.
‘We anticipated a mammoth demand so set an earnings threshold for people wanting to apply,’ he said.
The initiative offers a no-negative equity guarantee as LiveIn Quarters promises to buy back the property for the full £65,000 plus APR. If people want to buy the remaining equity they must pay the full market value.
‘We have had great interest from other cities and would like to roll the plans out across the rest of the UK,’ added Wright.