ONE of the UK's biggest housing associations is offering people the chance to buy half a flat in a bid to get them on the first rung of the property ladder.
Home Scotland, part of the UK-wide Home Group, is launching the "shared equity scheme" for the first time at its development just off the Capital's Slateford Road.
It is offering the deal on ten of the flats on housebuilder Barratt Developments' W
est 1 scheme.
It means buyers can gain ownership of the two-bed flats, which range from £178,995-£217,995, from only £90,000. They then get the option of increasing their stake two years later.
Agents and house-builders have welcomed the use of the scheme, which is expected to grow in popularity as the credit crunch continues to bite.
But it is also said that the use of shared equity is a sign that builders have accepted the difficulty of getting someone to pay the full price of a property at present.
Margarita Morrison, managing director of Home Scotland, said: "Five years ago, if you wanted a house in Edinburgh you could buy outright and get a 95 per cent mortgage or more without too much difficulty.
"But because of the credit crunch it is harder, people can borrow less and they have less money in their pockets.
"Shared ownership can get people on to the property ladder now, then, when your circumstances change you can get more of a stake."
The West 1 scheme is only available to those with maximum earnings of £22,000 for a single person or £32,000 for a couple and buyers must also be either a first-time buyer, an existing housing association or local authority tenant, a disabled person or a current homeowner whose home is being demolished.
Neil Edgar, development officer at Home Scotland, which has approaching 3000 homes under its management, said: "We would encourage people to come and take a look at this scheme because we believe it will appeal to people on low incomes who would otherwise find it difficult to step on to the property ladder."
The scheme is being marketed by estate agent and property firm Rettie & Co.
Scott Brown, an estate agency partner at Warners, a member of the ELPG group of property solicitors, said shared equity would never be considered "if the market was flying".
"It is becoming more popular because developers have been hit more than anyone by market conditions. From their perspective, they are better getting 80 per cent or less than nothing. If properties aren't selling they have to find another way in."
