Views on shared ownership

We have been advising clients on Shared Ownership property purchases and mortgages since 1992 - we have found them a very useful device for getting more people on the property ladder. The only reason that they have grown over the years is due to the change in site planning consents for builders in that they now must include an element of affordable housing in developments. The government needs to take another look at Shared Ownership and offer a lot more assistance/update some of the draconian Housing Association lease conditions that are out there. On the whole, we find the scheme useful for clients who have a bedroom need that their budget can't afford, often making it possible for larger properties to be budgetted for.

We have been advising clients on the shared ownership scheme for many years, particularly for first-time buyers or home movers that haven't got the borrowing capacity or the deposit to purchase a property in full.

There will certainly be an increased demand for shared ownership properties as property values and mortgage borrowing costs runaway form first time buyers.

I personally think it's a fantastic scheme if used for the right person. It allows first time buyers and home movers to purchase their home more importantly allowing them to step on the ladder affordably especially those who are buying on their own.

London clients are often going with this scheme as a first home and then when they have earned more, they are starting to then buy. Its a good scheme, but I dont think its a permanent home for many.

Historically shared ownership has been like Marmite. People either love the idea or hate it.

In recent years it has very much been a case of needs must. An example of this is as landlords look to sell properties due to the increase in mortgage interest rates and the lack of tax relief given to landlords we are seeing tenants become homeless.

Shared ownership is welcomed and saves the day! It's a middle ground between owning 100% of a property and owning a small piece of the cake with the option to purchase more later on.

In my opinion, it is a great scheme and certainly has its place in the market. It would be nice to see more lenders open up to such schemes.

Very simply I genuinely think its fantastic, its a brilliant way for people to get on the property ladder esp with house prices being so high, the biggest stumbling block for most people is their deposit. Very recently I had a young couple with two children, we all know how expensive they are, renting privately and were really struggling to save how much they need to for a 5% deposit on a standard purchase, they felt their dreams of home ownership were an impossibility esp a house that met their needs. Thanks to shared ownership they were able to purchase their 3 bed semi with a 5% deposit and their combined mortgage and rent payments were only slightly more than what they were paying in just rent alone.
In areas where house prices and rents are high its such a challenge for people to save for their deposit its often the only way people can get on the property ladder.

I have always felt that shared ownership has a place in the market. But, it needs to be for the right customer. It is never the first option that I give to a customer but if clients don't have a big enough deposit or sufficient income I will often use the option of shared ownership as a potential option for the customer.

But, it is important to make people aware of the downsides. Dependant on the share purchased the rent can be very expensive as well as the fact that a lot of shared ownership housing associations now won't let you staircase to purchase the whole of the property. This reduces the number of lenders available and also restricts the customer.

I think more people are interested in shared ownership however it is difficult to find properties for sale as not enough are being built to keep up with demand.

Shared Ownership has been around for a while now, but always plays second fiddle to more well-publicised schemes, such as Help-To-Buy, which is a shame as it can work for a lot of people. With products available that let you purchase with no deposit (something that has existed in the Shared Ownership space long before Skipton's recent Track Record product) or just 5% of the share you are buying, it helps mitigate one of the largest barriers for First-Time Buyers - saving a deposit. You can then grow your share of the property over time, something called stair casing, so whilst you may have a 25% share at the beginning you can build this to 100% of the property. It's not all blue sky and sunshine though, you have to follow the rules laid down by the Housing Association and remember that you own it with them, which may grate on some people. However, as a way to start your property ownership journey, it is worth considering and can certainly help more people than it does currently.

I have done many shared ownership mortgages and for some people they are an attractive way of getting on the property ladder. Small or zero deposit products are readily available which is especially attractive to many people in todays climate as it becomes increasingly difficult to save.