First time buyer properties in Castletown jump by £18K

DoI tells prospective purchasers to adjust their borrowing requirements

First time buyers planning to buy on a new estate in Castletown have been told their prospective homes are going up by £18,000.

The Department of Infrastructure has written to shortlisted purchasers who want to secure accommodation at The Meadows.

The letter, dated today and sent by the interim head of housing operations, reveals the two-bedroom properties - which are being built by Haven Homes - are being upped from £150,000 to £168,000.

In March the department began drawing up a shortlist for the 16 homes available under the Shared Equality Purchase Assistance (Frist Home Fixed) Scheme.

Buyers were told the selling price would be £150,000 however, two months later, the DoI now says the prices are going up due to an amendment to the scheme which was approved last summer.

This allowed the price of property to be increased up to £175,000.

In the letter, seen by Manx Radio, the department writes: "The prices of the two-bedroom houses at The Meadows now available fall under the amended scheme, however, mindful both of the costs for the developer and the difficulties for first time buyers in being able to afford the purchase of their first home, the department has been able to secure a lower price for these two-bedroom houses at £168,000 instead of £175,000.”

DoI staff are now telling prospective purchasers to approach their financial advisor and/or mortgage providers to make the necessary adjustments to their borrowing requirements and request a revised mortgage in principle certificate.

This must be submitted by 31 May.

At this stage the department says it is verifying the recipients’ eligibility for the scheme adding that today’s letter does not constitute an offer for a property.

Manx Radio has contacted the Department of Infrastructure and infrastructure minister for a response.