If you are ready to start your journey to owning your own home, the Affordable Purchase Scheme may be an option for you. It is designed to help you bridge the gap between what you can afford to pay and the price of your new home.

Local Authorities will sell newly built homes at a price lower than the open market value.

The price you pay will be calculated by the local authority based on your income and mortgage capacity. The local authority will contribute towards the difference between the open market value and the price you pay. This contribution will be expressed as a percentage and represents the equity share the local authority will retain in your home.

An affordable home will have a minimum purchase price set by the local authority. You must be able to show that you have the capacity to pay at least the minimum purchase price by using a combination of a mortgage, savings and Help to Buy (if applicable). The price you pay for your home will be higher If your income and mortgage capacity is higher.

You can redeem or "buy out" the equity share in part or in full at a time of your choosing, but there is no obligation to do so. Certain events will trigger the local authority to request their equity share to be redeemed. These include if you sell your home and are set out in the Affordable Dwelling Purchase Agreement, which you will need to sign. You should discuss this with your solicitor.

The price to be paid for your new home and the percentage equity share will be calculated by the local authority. The equity share is in addition to your mortgage which can be secured from the main lending institutions or by way of a Local Authority Home Loan.