by Nirvana
A Business for Social Change
Cost Effective New Housing for the Elderly & Persons With Disabilites
Home ownership

Home ownership

There are myriads of reasons for wishing to purchase a home, not least for the independence and long-term financial benefit it brings. It can be difficult to get onto the market at first, namely because of the strict application process as well as the extremely competitive housing market. Studies show, however, that opportunities for home purchasing may be more difficult for those with a disability.

Home ownership for those with a disability can be more difficult, mainly as the statistics suggest they are being left behind. According to the Office of National Statistics (ONS), the number of disabled persons in social housing (25%) are triple that of those without a disability. Disabled people are also less likely to own their own homes, with just 39.7% doing so. Of those without a disability, 53.3% are homeowners.

It’s not helped by employment stats pointing towards those with a disability being far less likely to afford to purchase a home. Last year, the ONS found that 53.5% of disabled persons in the UK aged 16 to 64 were in employment. Comparatively, 81.6% of people without a disability were in employment.

As those without employment are likely to be financially supported by disability benefits, this hampers their chances of home ownership further. Not only would this decrease the chance of having a large enough deposit to secure a mortgage, but those relying on government support as their main source of income also would likely not pass strict Mortgage Affordability Tests.

If you feel you can afford a mortgage, you can either opt for the Right To Buy scheme through your local council or apply for a house on the open market. A Shared Ownership is also a good option as the maximum loan to value available to people receiving government financial support is usually 75% of the purchase price or value of the property.

However, if you are working, or you have a partner that is working, any benefits will be considered towards the overall household income total. With this in mind, it’s important to employ a ‘play it safe’ approach and target a house that’s within your means. It’s also crucial you take the time to consider the best broker for you.

If you have a long-term disability and you are unable to purchase an outright mortgage for financial reasons, you may be able to utilise support through a Shared Ownership scheme called Home Ownership for People With Long-Term Disabilities (HOLD). This scheme stipulates you must try regular Shared Ownership options first, but it’s available to you should that fail.

You can buy an initial share of a home worth between 10% and 75% of its market value, with you then paying proportional rent to the landlord to make up the rest.

This may be a great option for those wishing to have the independence of being able to make home adjustments, but also the flexibility of not having a full mortgage.