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Pocket Living: Everything you need to know about this alternative ownership scheme for first-time buyers
In this day and age, buying a property can seem like an impossible dream for many. With increasingly high rents and being unable to save for a mortgage deposit, it’s easy to get stuck in the rent trap.
But all is not lost – there are alternative and affordable ways that potential first-time buyers can get on the property ladder.
One such scheme is Pocket Living – a London-based property developer that offers well-designed and affordable homes to local first-time buyers.
House Beautiful UK spoke to Pocket Living’s sales and marketing director, Lucian Smithers, to find out what the scheme offers, who is eligible, and the pros and cons. Here is everything you need to know about this alternative way to buy a home.
What is Pocket Living?
Launched in 2005, Pocket Living offers homes that are sold at lower prices compared to the normal market rates due to their smart compact design, which makes the most of space available.
The one-bedroom flats are sold outright for at least 20 per cent less than the surrounding market rate and are only available to local buyers who earn below a certain salary.
Pocket Living work closely with local authorities to free up urban sites that are in great locations for their customers.
Even though Pocket homes come under the definition of ‘intermediate affordable’ housing, each flat is attractive, has large floor-to-ceiling windows resulting in excellent natural light, and high quality but not extravagant materials.
The homes are always well-located, more affordable to run, and are close to good transport links.
A post shared by Pocket (@pocketliving) on Mar 29, 2018 at 8:13am PDT
Who are Pocket homes for?
Pocket Living states that their homes are for ‘young, middle-earning Londoners who contribute to their city in so many ways but can't afford to buy their first home.’
To be eligible for Pocket homes, you have to be a first-time buyer, live or work locally to the property and earn less than £90,000 a year. So no investors can get involved.
Pocket owners are on average 32 years old, earn £42,000 a year and have been renting in London for between five and eight years.
Why choose this scheme as opposed to the traditional ownership route?
‘Pocket homes are truly affordable,’ Lucian said. ‘They are at least 20 per cent cheaper than the surrounding market rate, meaning that local hard-working, middle-earning Londoners who make the city tick, we call them city makers, can afford to buy.
‘In Wandsworth, where median house prices are nearly 18 times average annual salaries, our Pocket homes at Mapleton Crescent SW18 start from £225,000, a 44 per cent discount.
‘To buy a Pocket home you have to live or work locally, earn under the affordable salary cap set by the Mayor and be a first-time buyer. These criteria allow our homes to be sold to the people who need them the most.
‘In London, it costs twice as much for first-time buyers to buy a home compared to anywhere else in the UK , with many believing they will never be in a position to buy and face living in private rented accommodation all their lives.
'This is why we developed the Pocket model, using smart design and construction methods to build affordable homes so that London’s city makers can create a home in their community without being pushed out by rising property prices.’
What types of home are on offer and where?
‘All our Pocket homes are one-bedroom flats with an award-winning design that makes the best possible use of space,' Lucian said.
‘As well as our Pocket homes at Mapleton Crescent SW18 in Wandsworth we have developments in Chiswick, East Croydon and Seven Sisters. Some of our recently completed schemes have been in Deptford, Kingston Town, Brixton and Hackney.’
How much do Pocket homes cost?
‘We’re proud to say that the average cost of a Pocket flat is around £280,000, whilst a recent report stated the average first-time buyer home in London is over £400,000,’ Lucian said.
An annual checking process makes sure the homes consistently stay in the affordable realm.
‘Now we also include some open market homes in our larger schemes, called Pocket Edition, which are available to anyone,’ Lucian added.
What are the challenges that applicants face with this scheme?
‘Our main challenge is being able to provide as many homes as are needed when demand is so strong,’ Lucian said. ‘We’re building as many developments as we can but there are so many Londoners looking to get on the property ladder that our waiting lists are long.
‘We’d suggest that any first-time buyers struggling to find an affordable first home in London register their details on our website as soon as possible. We’re now delivering more homes for Londoners than we ever have before and that way we can make sure we get in touch as soon as an opportunity arises.’
How can you get involved?
‘All prospective owners have to register on the Pocket website, provide some background information and qualify that they meet all our Pocket criteria,’ Lucian said. ‘When a flat that they are eligible for comes up, they are notified and given an opportunity to view the property and apply to buy one.’
Top tips for people looking to use this route to buy a home
‘To get on the property ladder in any home, you need to understand your own finances, so speaking to a mortgage adviser as early as possible is important,’ Lucian said.
‘Mortgage advisers help buyers understand their purchasing power and how they can improve it with surprisingly small changes. They can also explain how buyers can use Help to Buy which really works for those with smaller deposits and lower incomes.
‘We have a partnership with Censeo Financial who provide prospective Pocket customers with a free financial assessment and mortgage advice. In addition, our website includes a detailed frequently asked questions section which helps to answer many of the questions our customers have at the early stages of becoming a Pocket homeowner.
‘Most important of all, make sure you’re registered. Only by registering your details will we be able to keep you informed of any Pocket homes you may be eligible for.’
To find out more about Pocket homes and to see the location of all the developments currently available, visit pocketliving.com/pocket.
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