Shared ownership changes could help 175,000 new buyers

Changes to the shared ownership rules could help an extra 175,000 people on to the housing ladder, according to the government.

Shared ownership allows people to ease their way into the property market by purchasing a share in their home rather than having to pay the full amount. They only have to find a deposit of 5% of the price of the share they are buying.
They then pay rent on the part they don’t own but can increase their stake over the years if they so wish.
The scheme has been available since the 1980s but has been restricted by local councils dictating who should be a priority based on a wide range of factors from salary to profession, to where the buyer comes from.
Under new measures that came into effect in April, the scheme is now available to people of any occupation. Income caps have also been raised to £90,000 in London and £80,000 throughout the rest of the country.
The government has provided the following table of how the scheme could apply in different regions:
 

  Property type Typical shared ownership price 25% share 5% deposit on 25% share
North East 3 bed house 125,000 31,250 1,563
North West 3 bed house 153,000 38,250 1,913
Yorkshire & Humberside 2 bed house 115,000 28,750 1,438
East Midlands 2 bed house 130,000 32,500 1,625
West Midlands 2 bed house 135,000 33,750 1,688
East of England 2 bed house 175,000 43,750 2,188
London 1 bed flat 275,000 68,750 3,438
South East 2 bed flat 190,000 47,500 2,375
South West 2 bed house 160,000 40,000 2,000

 
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