Buy 25 per cent and rent the rest

By Jon Massey on July 10, 2008 4:33 PM |

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FIRST time buyers have the chance to get on the property ladder by purchasing a quarter of an apartment in two massive new developments.

A total of 39 flats in Glenkerrin’s The Forge, right, and Ballymore’s Pan Peninsula, left, are being offered on a shared ownership basis by Assettrust Housing Ltd.

Under the scheme buyers purchase 25 per cent of the property and pay rent on the remainder alongside their mortgage repayments.

Assettrust then pick up the bill for legal services and pay stamp duty.

But there are restrictions on who can apply for the scheme. The 27 one and two-bedroom flats in Pan Peninsula have been made available for all first time buyers.

But the 12 duplex apartments The Forge are only available to first time buyers who either live or work in Tower Hamlets.

The flats in Pan Peninsula, which is located in Millharbour, include integrated kitchens and would attract rent of around £400 per week on the lettings market.

The apartments in The Forge, which is in Westferry Road, further down the Isle of Dogs, include fully fitted kitchens, Bosch appliances, underfloor heating and wood flooring. Each appartment has its own front door and two have terraces.

Despite these incentives to help first time buyers get on the property ladder, the credit crunch is undoubtedly hitting this sector of the market, with mortgage lenders pulling the plug on many loan deals and rejecting buyers who only have minor glitches in their credit history.

With flats shooting up all around the Canary Wharf area and house prices falling, the true effects of the economic downturn may not reveal themselves for months to come.

Agents report that prices in some areas of central London are the lowest they have been for 10 years.

In contrast, the rental market has been buoyed by the downturn in the number of properties being bought and sold, with the number of lettings up and prices starting to climb as demand intensifies.

Assettrust will be holding open days for the two developments this month, on July 13 for The Forge and on July 27 for Pan Peninsula. For further information call 0845 373 2424.