Government re-vamps shared ownership schemes
Shared ownership lets first-time buyers purchase as little as 25 per cent of a home and rent the rest from a housing association – increasing the stake they own over time in a process known as “staircasing”.
Under the current model, buyers can only increase their share of a property in 10 per cent chunks – which can be as much as £45,000 per time – but new rules will means people will able to buy 1 per cent shares.
Robert Jenrick MP, the housing secretary, said: “Building the houses this country needs is a central priority of this government. We know that most people still want to own their own home, but for many the dream seems a remote one.
“My mission is to increase the Shared homeowners will be able to increase their share of a property at lower increments under new rules.
number of homes that are being delivered and to get more young people and families onto the housing ladder, particularly those on lower incomes. That’s why I am announcing radical changes to shared ownership so we can make it simpler and easier for tens of thousands trying to buy their own home.”
Ross Hunter, Post Office spokesperson, said: “It’s important that we take steps to enable people from a variety of economic backgrounds to find routes on to the housing ladder. In 2018, a first-time buyer household income in the UK was £48,289 on average, and the average cost of a property in the UK was £282,713 – it can take years to save for a deposit and 69 per cent of first-time buyers will depend on additional help from their loved ones to save the necessary funds. Any step to support people on lower incomes in their journey to realise their aspiration of owning a home is welcome.”
Jenrick also announced that he will look to reform the planning system to increase housing delivery and make home ownership more affordable for people looking to buy their first property, particularly in areas which are least affordable.
This could include increasing the number of homes sold at discounted prices to people trying to get onto the property ladder, boosting homeownership and helping build local support for new development.
Jenrick also announced that people buying a property under Help to Buy will find it easier to take out a mortgage over 35 years, closing a loophole that prevented people from taking out a mortgage with a term of more than 25 years.
The change means homeowners can reduce their monthly mortgage repayments by spreading their borrowing over a longer period.