A number of homes which are ‘no frills’ and offer basic accommodation are to be built in Enfield, London to help first time buyers to get onto the property ladder.
The ‘naked homes’ will be built with just the bare essentials, so that the property developer can afford to sell them for around 40% less than a regular new build home. The homes will have just one sink in the kitchen and basic plumbing, no decoration or flooring, and no partition walls. The price for a starter home measuring 50sqm, will start at £150,000, while a larger property may be sold for £340,000.
An investment of £500,000 into the project has been agreed by Sadiq Khan, the Mayor of London, so that 22 homes can be built in Enfield, by Naked House, a not for profit developer. According to data released by Zoopla, the average price for a home in London is now more than £650,000, resulting in many people being unable to afford to buy their own home in the capital. This is just one way to tackle the affordability gap, by providing bare essential homes.
Although there will be only 22 homes initially, there is potential for the developer to build more homes on seven other sites. The initiative can be used in conjunction with first time buyer schemes, shared ownership and starter homes.
The criteria for qualifying for one of the properties is still to be finalised, but it will be crucial that a buyer is able to obtain a mortgage and pass affordability checks. Mortgage advisers spend time studying on CeMAP courses so that they can help first time buyers find a competitive deal.