A new housing initiative in Greater Manchester offers a potential solution for those struggling to afford a mortgage deposit. This program allows participants to receive a £10,000 contribution towards their deposit by committing to 500 hours of work on a housing development project. The tasks varied, including labor-intensive work and administrative duties.
The scheme, known as “sweat equity,” was implemented in a recently completed 27-home development in Ince, Wigan, through collaboration between the housing association Prima Group and the charity Housing People Building Communities (HPBC). The project involved converting a disused church into 13 apartments priced from £125,000 and constructing 14 new three-bedroom homes, priced between £190,000 and £197,500.
Participants, referred to as “home partners,” purchased between 10% and 75% of the properties, with plans to increase their stake over time while paying rent on the remainder. The arrangement has seen some buyers contribute with the support of family and friends, enhancing community ties during the process. John Ghader, CEO of Prima Group, noted that around 13 families benefited from this equity model.
Despite its advantages, the model faces challenges. Many mortgage lenders have been hesitant to recognize this approach, creating barriers for potential buyers. Ghader advocates for greater flexibility and recognition from financial institutions to support such initiatives in the future.
This model is not entirely new; similar arrangements were seen in past UK developments, such as one in Toxteth, Liverpool, completed in 2019, and in various forms in the US for decades. While the recent scheme has attracted attention, there are currently no concrete plans for replication, as stakeholders hope the government will promote similar initiatives to address housing affordability and community development.
Source: https://www.theguardian.com/money/2025/oct/04/sweat-equity-schemes-homebuyers-mortgage