The government has recently clarified the eligibility criteria for the Home Ownership for People with Long-term Disabilities (HOLD) scheme, a shared ownership programme aimed at helping Universal Credit claimants with disabilities to become homeowners.
HOLD is specifically designed to support individuals aged 18 and over who have long-term disabilities, including physical and learning disabilities, cognitive and sensory impairments, and enduring mental health conditions such as autism. The scheme allows these individuals to part-own a home in partnership with a housing association.
Under the HOLD scheme, the housing association purchases the property jointly with the individual and their family, utilising grant funding from Homes England to help keep rental costs affordable. The individual then secures a mortgage to buy a share of the home, which can range from 10% to 75% of the market value depending on their financial circumstances. A deposit usually between 5% and 10% of the share is required. Over time, participants can buy additional shares of their home through a process called ‘staircasing,’ reducing the rent paid on the landlord’s portion.
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Shared owners pay rent on the housing association’s share of the property as well as a service charge covering maintenance and repairs. Both costs are eligible for housing benefit support.
When the property is sold-either when the occupant moves on or passes away-the initial grants from Homes England are repaid and reinvested to aid other properties.
The scheme gained wider attention following a parliamentary question about support for disabled Universal Credit claimants without capital who wish to join HOLD. In response, Baroness Taylor of Stevenage, Parliamentary Under-Secretary for Housing, Communities and Local Government, outlined that the department and Homes England have published detailed guidance on eligibility and how to locate landlords offering the scheme. She emphasised that applicants should seek independent financial advice and discuss their circumstances directly with housing providers, as mortgage lending decisions are made by individual lenders.
Insights from Professor Luke Clements of Leeds University have shed light on some challenges within the HOLD process. He highlighted delays in obtaining necessary court orders for some applicants, which can take over six months due to court backlogs, and noted restrictions often placed on property types by housing associations. Additionally, while some applicants have been able to cover deposits and associated costs, this is not feasible for all. Professor Clements suggested that in some cases, family and friends might assist with repayable loans secured against the property.
Individuals may be eligible for HOLD if they meet the age and disability criteria and also fall into one or more of these categories: first-time buyers; former homeowners unable to afford a new home; those forming a new household (such as after a relationship breakdown); existing shared owners wishing to move; or homeowners seeking to move to a home that better meets their needs but cannot afford to buy outright.
Further information about the scheme and how to apply can be found on the official government website, alongside additional resources from the Local Government Association.