First Time Buyers Scheme

Summary

A requester asked the Department of Infrastructure for statistics and financial details regarding the First Time Buyers Scheme, specifically focusing on equity buyouts, interest payments, and the allocation of surplus income since 2018. The authority confirmed that all requested information was sent to the applicant on May 9, 2024.

Key Facts

• The request was received by the Department of Infrastructure on April 4, 2024.
• The outcome of the request was 'All information sent'.
• The response was issued on May 9, 2024.
• The request covered data from the 2017/18 financial year to the present.
• The response consisted of 4 pages across 1 document.

Data Disclosed

• 2024-04-04
• 2024-05-09
• 2017/18
• 20%
• 5%
• 4 pages
• 1 document

Original Request

Hi, I am currently in a First Time Buyers house. The government own 20% equity which I currently pay 5% interest on. I want to know what the interest payments are used for? Also if I were to try to buy out the Government at the moment (after only 5 years of being in the property) I would have to pay them nearly double of what i initially borrowed. What would happen to this money if I were to do this? I don't know of any investment that would double your money within 5 years! It would be very interesting to see how much the Government have received in the last 5 years from first time buyer interest and any buy out information verse what was paid out by them and then know where the money they have earnt is then spent and allocated. If this information could be provided from 2018 until current date. Thanks 1. Since 2018 to present how many people have purchased a first time buyer property with the equity scheme? 2. Since 2020 how many people have bought the government out of their equity? 3. Since 2020 how many people have paid of just the original loan amount? 4. Since 2020 how much has the government made from this scheme from interest payments and buy outs? And how much has been made? 5. Since 2020 what has the money the government made on the scheme been spent on? 1. Since 2018 to present how many people have received financial assistance towards the purchase of; a. A discounted price property under the Shared Equity Purchase Assistance (First Home Fixed) Scheme b. An open market property under the Shared Equity Purchase Assistance (First Home Choice) Scheme 2. Since 2020 how many people have bought out the Government's Equity Share inclusive of the original loan amount and loan interest; a. Under the Shared Equity Purchase Assistance (First Home Fixed) Scheme b. Under the Shared Equity Purchase Assistance (First Home Choice) Scheme 3. How many of those people included in the answer to question 2 had to pay more than the original loan amount with interest as a result of the Government's Equity Share in the value of the property? 4. Since 2020 how many people have repaid the original loan amount and loan interest only, with the Government retaining any portion of Equity Share in the value of the property? 5. Since 2020 what total net surplus income has the Government received from payments received under the Shared Equity Purchase Assistance Schemes? 6. Since 2020 what has the net surplus income from the Shared Equity Purchase Assistance Schemes been used for?

Data Tables (1)

Data Tables (reformatted)

Full Response Text

Department of Infrastructure Sea Terminal Building, Douglas, Isle of Man, IM1 2RF

Contact: FOI Response Team Telephone: (01624) 686785 Email: dpo-doi@gov.im

Our ref: 3785333 3 May 2024

Dear ###

We write further to your request, received 4 April 2024, which states:

"Hi, I am currently in a First Time Buyers house. The government own 20% equity which I currently pay 5% interest on.

I want to know what the interest payments are used for? Also if I were to try to buy out the Government at the moment (after only 5 years of being in the property) I would have to pay them nearly double of what i initially borrowed. What would happen to this money if I were to do this?

I don't know of any investment that would double your money within 5 years! It would be very interesting to see how much the Government have received in the last 5 years from first time buyer interest and any buy out information verse what was paid out by them and then know where the money they have earnt is then spent and allocated.

If this information could be provided from 2018 until current date.

Thanks

1. Since 2018 to present how many people have purchased a first time buyer property with the equity scheme?
2. Since 2020 how many people have bought the government out of their equity?
3. Since 2020 how many people have paid of just the original loan amount?
4. Since 2020 how much has the government made from this scheme from interest payments and buy outs? And how much has been made?

5. Since 2020 what has the money the government made on the scheme been spent on?

6. Since 2018 to present how many people have received financial assistance towards the purchase of;
   a. A discounted price property under the Shared Equity Purchase Assistance (First Home Fixed) Scheme
   b. An open market property under the Shared Equity Purchase Assistance (First Home Choice) Scheme

7. Since 2020 how many people have bought out the Government's Equity Share inclusive of the original loan amount and loan interest;
   a. Under the Shared Equity Purchase Assistance (First Home Fixed) Scheme

b. Under the Shared Equity Purchase Assistance (First Home Choice) Scheme
3. How many of those people included in the answer to question 2 had to pay more than the original loan amount with interest as a result of the Government's Equity Share in the value of the property?
4. Since 2020 how many people have repaid the original loan amount and loan interest only, with the Government retaining any portion of Equity Share in the value of the property?
5. Since 2020 what total net surplus income has the Government received from payments received under the Shared Equity Purchase Assistance Schemes?
6. Since 2020 what has the net surplus income from the Shared Equity Purchase Assistance Schemes been used for?"

Our response to your request is as follows:

1. Since the 2017/18 financial year to present how many people have received financial assistance towards the purchase of; a. A discounted price property under the Shared Equity Purchase Assistance (First Home Fixed) Scheme- 122 people

b. An open market property under the Shared Equity Purchase Assistance (First Home Choice) Scheme- 58 people

1. Since the 2019/20 financial year how many people have bought out the Government’s Equity Share inclusive of the original loan amount and loan interest; a. Under the Shared Equity Purchase Assistance (First Home Fixed) Scheme- 39 people

b. Under the Shared Equity Purchase Assistance (First Home Choice) Scheme- 58 people

1. How many of those people included in the answer to question 2 had to pay more than the original loan amount with interest as a result of the Government’s Equity Share in the value of the property? 83 people

2. Since the 2019/2020 financial year how many people have repaid the original loan amount and loan interest only, with the Government retaining any portion of Equity Share in the value of the property? 12 people

3. Since the 2019/2020 financial year what total net surplus income has the Government received from payments received under the Shared Equity Purchase Assistance Schemes?
   From 2019/20 financial year to 2023/24 financial year inclusive, the Department has realised net surplus income of £1,127,419 from capital repayments relating to the Shared Equity Purchase Assistance Schemes.
   Please note that it has not been possible to provide a figure specifically for net surplus income from interest payments relating to the Shared Equity Purchase Assistance Schemes. This is due to the way the Department has been accounting for payments relating to loans and grants for both the Shared

Equity Purchase Assistance Schemes and the House Purchase Assistance Schemes.

1. Since the 2019/2020 financial year what has the net surplus income from the Shared Equity Purchase Assistance Schemes been used for? All net surplus income is transferred to the Housing Reserve Fund at the end of each financial year. The terms of reference for the Housing Reserve Fund can be found on page 113 of the Isle of Man Government Financial Regulations found online at the following link: https://www.gov.im/media/1379854/financial-regulations-june-2023- 200623_compressed.pdf

Please quote the reference number 3785333 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.

I will now close your request as of this date.