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First-time Buyer

First-time buyers missing out in shared ownership knowledge gap

First-time buyers missing out in shared ownership knowledge gap
Samantha Partington
Written By:
Samantha Partington
Posted:
28/05/2024
Updated:
28/05/2024

Two-thirds of first-time buyers do not understand what shared ownership is or how it can help them get on the housing ladder.

Gaps in first-time buyers’ knowledge about shared ownership, which is an affordable housing scheme, could be preventing them from getting on to the property ladder, according to a survey by TML.

Crossed wires

Who you are sharing the ownership of your home with caused the greatest confusion among buyers.

Some 17% of first-time buyers thought that shared ownership meant co-owning with your family. A further 14% said that shared ownership meant sharing responsibility of being a landlord on a property. Another 8% believed it meant owning with a stranger, and a further 7% identified it as owning with a friend.

Some 14% said they didn’t understand shared ownership at all, and another 5% said it meant owning a few rooms in a house.

With 65% either defining shared ownership incorrectly or being unable to do so at all, first-time buyers could be missing out on the opportunity of homeownership, says TML.

Affordability challenges

Over the last 70 years, it has never been a more expensive time to be a first-time buyer than now, according to research from the Building Societies Association.

Affordability challenges, high house prices and the rising cost of living have left first-time buyers with significant barriers to getting on the ladder. The association has called for radical support from the Government to support first-time buyers.

Louise Apollonio, head of corporate accounts at TML, said: “The first hurdle to get onto the ladder is raising a deposit, which is particularly difficult for those renting who are also dealing with steep rental price rises. However, that doesn’t mean that they wouldn’t be good candidates for owning a property. Shared ownership provides an opportunity for first-time buyers to get a step on to the ladder without the need for a huge deposit, allowing them to slowly work up to total ownership of the property.

“We believe that everyone deserves a place that they call home, and are committed to ensuring that our lending practices support our end customers’ real-life situations.”