Falling property prices, economic pressure on households, and tighter lending criteria, have all been blamed for the dramatic drop but one Driffield estate agent is keen to throw prospective buyers and vendors a lifeline pointing out that despite the current economic challenges there is a sure fire way of getting onto the first rung of the ladder or even climbing up that little bit further.

Martin Slater, associate director of Quick and Clarke Estate agents, on Middle Street South has teamed up with independent financial adviser Paul Jensen, of financial advisory firm Park Row, to offer alternative options when it comes to securing a mortgage agreement.

An equity share scheme is a relatively new concept in the property world and one that is soon to become the buzz word about town if Mr Slater and Mr Jensen have anything to do with it.

Mr Slater has told the Driffield Times that over recent months vendors have been forced to drop the asking price on their properties to entice buyers.

But it is proving to be a costly move and one which is no-longer needed in light of equity share schemes which negate the need for a deposit.

Mr Slater said: “The problem with knocking the price down is if you have a house at £100,000 you’re giving away £10,000 but you’re still faced with the problem in that your first time buyers must have a deposit.

“Now you don’t need that £10,000 so in some cases it’s a way of sidestepping the deposit.”

So how does it work? Under Builder Equity Share Schemes the homebuyer, subject to the vendor’s permission, can take out a minimum 75 per cent share in a property meaning the loan agreement can be up to 25 per cent of the open market value.

Under Non Builder Share Schemes the applicant’s share is a minimum of 50 per cent of the open market value while the loan agreement can be for up to 50 per cent.

The loan agreements are taken out for a minimum of five years after which the vendor is entitled to ask for their share to be paid for in full but the beauty of the schemes is that those who cannot afford mortgages, or do not have a deposit, can still take a step up onto the property ladder.

“If I had a first time buyer with no deposit I would still get them viewing houses and if they like anything I would then approach the vendor with the idea of an equity share scheme,” Mr Slater added.

Mr Jensen has hailed the concept as ‘brilliant’ and praised the Nationwide Building Society for being one of the few mortgage lenders willing to lead the way and open up new doors.

“As it stands if a vendor has a house for sale there will be a percentage of people who will not even view feeling that it is unattainable however this will broaden the market of opportunities for not only the vendor but the prospective purchaser as well,” Mr Jensen said.

“It can be used to keep chains together.