Affordable home ownership explained

The Derbyshire Dales is an area with high average property prices and, like most parts of the United Kingdom, prices have risen faster than average incomes in recent years. This means that many people struggle to buy a home suitable for their family.

You may be surprised to know that there are options for buying a home at an affordable price within Derbyshire Dales.

Help to Buy - Shared Ownership

If you can’t quite afford a mortgage on 100% of a home, shared ownership offers you the chance to buy a share of your home (between 25% and 75% of the home’s value) and pay a subsidised rent on the remaining share. Sandra Wright, Sales Negotiator for NCHA Sales explains more:

“The flexibility of shared ownership means that it works for a really wide range of people, from first time buyers through to downsizers. It allows buyers to get a house that suits them, in areas that might otherwise be out of their reach”.

A number of housing schemes, which have a range of shared ownership properties, are in the pipeline across the Derbyshire Dales.

Who can buy through shared ownership?

You can buy a home through shared ownership if:

  1. Your household earns less than £80,000 a year, and;
  2. You are a first-time buyer, you used to own a home but can’t afford to buy one now, or you are an existing shared owner looking to move.

How does shared ownership work?

  1. You purchase a share of the property, between 25-75%, with a mortgage or lump sum, depending on what you can afford
  2. You pay a subsidised rent on the share you don’t own
  3. There is no obligation to increase your share, and you can sell your share and leave the property at any time
  4. Shared ownership properties are always leasehold
  5. On housing schemes outside of the Peak District National Park, you can increase your share up to 100% at any time. If you own more than 80% and wish to sell, the housing association will buy the property back from you
  6. Within the Peak Park and on rural sites, lease restrictions may apply including an 80% purchase limit and requirements for a local connection to the parish/area. These measures ensure that the homes remain affordable for local people.

How much will it cost?

Below is an example cost of a recent scheme which completed in Wirksworth:

Two bedroomed house for sale valued at £155,000. The following example costs are based on a 25% share of £38,750:

Minimum deposit required is 5% = £1,938 (If a mortgage is required, you will need a minimum deposit of 5%; based on the share, not the 100% value).

Mortgage required = £36,812

Monthly mortgage payments = £194.31 (Based on a 25 year repayment mortgage with an interest rate of 4%; this is an example only, actual costs may vary.

Monthly rent = £266.41

Monthly service charge = £37.00

(Service charge covers items such as gardening of communal areas, road maintenance and street lighting)

Total monthly cost = £497.72

How to apply for shared ownership

Check with the housing association first to see what they have available and if you can reserve a property (contact details below).

New shared ownership properties and resales across the District are also advertised through local estate agents and Rightmove.

Other Help to Buy Government schemes

First Homes

What are First Homes?

First Homes are a newly introduced type of discounted market sale housing which:

  • Must be discounted by a minimum of 30% against the market value;
  • After the discount has been applied, the sale must be at a price no higher than £250,000;

Who is eligible to purchase a First Home?

The national criteria that a First Homes purchaser must meet states that:

  • A purchaser of a First Home should be a first-time buyer.
  • Purchasers of First Homes, whether individuals, couples or group purchasers, should have a combined annual household income not exceeding £80,000 in the tax year immediately preceding the year of purchase.
  • A purchaser of a First Home should have a mortgage to fund a minimum of 50% of the discounted purchase price.

DDDC have also implemented local connection criteria within an interim planning policy for First Homes. Details of this can be found in the guidance notes - DDDC First Homes Criteria.

Application forms for First Homes

For developers looking to sell First Homes, they must contact Niki Wells, Housing Needs and Research Officer, to request an application form to be sent to them. The application form must then be completed and returned to Derbyshire Dales District Council for eligibility checks to ensure that the applicant meets the criteria, and the purchase can proceed. Please email This email address is being protected from spambots. You need JavaScript enabled to view it. to request an application form.

Other Discounted Market Homes

Discounted properties are located across the Derbyshire Dales that vary from 15% to 25% off the open market valuation.

Properties that fall within the Peak Park area are subject to an additional Derbyshire Clause restricting sales to those that meet the criteria.

Valuations are carried out by local estate agents and are then agreed by the Council before being advertised through the Councils Home-Options website. If within a set period of time the Council is unable to find and nominate a buyer, the property is then advertised on the open market, retaining its discount and cannot be sold above the valuation agreed.

The discount clause is written into the deeds of each of the properties and therefore is applied each time the property comes available for re-sale.

Owners do have the option to apply to the Council at any time to buy out the discount clause.

Self-build/Custom build homes

This type of housing usually means that you are directly involved in organising the design and construction of your new home. For more information about this type of housing tenure please visit the planning section of the Derbyshire Dales website.

Lifetime ISA

The Lifetime ISA was launched on 6 April 2017 to help young people save flexibly for the long term towards a first home and retirement at the same time. Adults under age 40 will be able to open and save up to £4,000 each year into a Lifetime ISA and receive a 25% government bonus paid monthly.

Individuals will be able to contribute to their Lifetime ISA and receive an annual government bonus on their contributions up to the age of 50. Savings invested in a Lifetime ISA can be withdrawn after age 60, or at an earlier age if they are being used to buy an individual’s first home worth up to £450,000 in the UK. More information can be found Lifetime ISA website.

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