A scheme allowing homebuyers to reduce their mortgage deposit by contributing labour on building sites is gaining attention as an alternative route to homeownership. In a recent development in Ince, Wigan, Greater Manchester, buyers who committed to 500 hours of work received a £10,000 contribution towards their deposit.
The 27-home project, a collaboration between housing association Prima Group and charity Housing People Building Communities (HPBC), converted a disused church into 13 apartments priced from £125,000 and built 14 new three-bedroom homes priced between £190,000 and £197,500. Participants, called 'home partners', bought shares of 10% to 75% on a shared-ownership basis, paying rent on the remainder.
Tasks ranged from manual labour and painting to marketing and IT support, with friends and family allowed to help. Rachael McCoy, a nurse and beauty salon worker, said the scheme 'came along at the perfect time', enabling her family to secure a home without a large deposit. 'Being involved in building my own home was amazing. It felt like we were building a community before we even got the keys,' she said.
However, the model faced challenges. One couple completed only 250 hours, earning £5,000 instead of the full amount. More significantly, many mortgage lenders were reluctant to engage. 'What we need now is greater understanding and flexibility from lenders about mortgage products like sweat equity so they can help more people,' said John Ghader, Prima Group chief executive. The firm wants sweat equity formally recognised in mortgage applications.
Similar schemes have been used in the UK before, such as in Toxteth, Liverpool, in 2019, and for decades in the US. While Prima Group has no immediate plans to repeat the exercise, it hopes the government will support the model. 'It hits a number of buttons of government policy. It raises aspirations. It’s got wider societal benefits, and it can be a catalyst to regenerate neighbourhoods,' Ghader added.
