New residents of a shared ownership development in Wigan saved £10,000 off their mortgage deposits by literally helping to build their new homes.
The 27-home development in Ince saw buyers – called home partners – commit 500 hours of ‘sweat equity’ as a discount on the deposit for buying their share. Tasks included labour, painting, decorating, landscaping, administration, marketing and IT support.
The scheme was delivered by housing association Prima Group in partnership with charity Housing People Building Communities (HPBC) using their sweat-equity model that enables people to get on the property ladder.
The disused St William’s Church and Presbytery was converted into 13 apartments with 14 new homes built on adjacent land gifted to HPBC by Liverpool Roman Catholic Archdiocese.
Prima Group made a £4m capital investment, which in turn was supported by a £1.6m grant from Homes England’s Affordable Homes Programme and Brownfield Land funding through Greater Manchester Combined Authority.
Home-partners bought between 10% and 75% stakes in properties with the option to acquire more while paying rent on the remainder.
New resident Chloe Radcliffe recently moved in having worked on her home with family members. She said: “My family and myself were brought up here and my two children attend St William’s Catholic Primary School.
“I have a small business across the road from the development and I’ve been desperate to get onto the property ladder to provide security for my children. It’s just not been possible to save for a deposit but the sweat equity model has given me the chance as a single parent to realise my dream.
“Me, my mum, dad and sister loved working on my home and building a great little community with other people who did the same who are now my neighbours. It was bizarre to see each other in working boots and high vis vests, all with spades digging but it was enjoyable and fun. Looking back at the pictures now, I think ‘did we actually do that?!’
“But being able to do this scheme and getting £10,000 off my mortgage by doing 500 hours has helped me out massively to own my house, I’m proud of where it has got me. Knowing that you have actually worked on your house and then looking and thinking ‘it’s mine’ – I can’t explain how good it feels.”
Innovative thinking
John Ghader, chief executive of Prima Group, added: “The sweat equity model is a great example of innovative thinking having a direct positive impact on local people who would otherwise have struggled to afford a deposit to get on the property ladder.
“It is also an alternative to the Bank of Mum and Dad. Instead of putting their hands in their pocket to help with a deposit – something not every parent can afford – some have got their hands on a shovel and contributed to their offspring’s on-site sweat equity hours.
“By working side-by-side with their future neighbours, home-partners have built strong relationships with each other to create a sense of belonging which fosters a community spirit from the start
“What we need now is greater understanding and flexibility from lenders about mortgage products like sweat equity so they can help more people.
“They need to review their stress testing criteria and treat shared ownership as a core housing product that taps into a significant segment of the market – a halfway house for those who can’t access social housing nor afford outright homeownership with a full mortgage.”
Racheal McCoy has benefited too. She is a nurse and also works in Radcliffe’s salon, Chloe Jayne Beauty & Training over the road. She said: “I’ve lived in Ince all my life and my family are all local.
“We wanted to stay in the area because my daughter goes to school here but we needed a three-bedroom home. Getting on the property ladder right now is really difficult and the mortgage payments would have crippled us.
“This scheme came along at the perfect time. The sweat equity model meant we could secure a safe home by working for it rather than needing to save for a deposit.
“Being involved in building my own home was amazing. It felt like we were building a community before we even got the keys.”
Chair of HPBC, Reverend Dr Shannon Ledbetter, said: “The sweat equity model embodies hope and integrity, offering those in need a hand-up, not a handout. Inspired by the values of unity, support and helping others, we’ve provided affordable, accessible homes for those who might otherwise never have dreamt of it.”
According to Prima Group, all the home-partners previously lived within four miles of the site and 70% within one mile. And 90% were employed in the village of Ince where St William’s is situated.
Main image: (left to right) Chloe Radcliffe, Rachael McCoy, and John Ghader
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