Since 2011, the popularity of shared ownership properties has grown by over 130% according to recent research.
Re-launched eight years ago via HomeBuy Direct, the shared ownership scheme has increased in popularity as national house prices have grown by almost 30% since 2011.
The data from My Home Move was based on 100,000 of its home buyer records and indicated that on average, shared ownership purchasers choose to buy 21-40% of a property. This is an average cost of £67,000.
Annually, around 1% of property transactions are shared ownership purchases, with first-time buyers purchasing around 17% of these.
Commenting on the data was Doug Crawford. The CEO of My Home Move highlighted the difficulties of getting on to the housing ladder and how shared ownership can offer a solution.
“For many, the prospect of buying a home outright is still a pipe dream, as prices have risen by around £60,000 since 2011, meaning that a home in the UK now costs an average of £217,000, or if you’re looking to buy in London, nearly £500,000. It is no wonder that solutions like shared ownership have grown in popularity, and by the end of 2017 we would expect shared ownership transactional volumes to account for more than 1% of all activity – especially as many lenders are now more willing to lend on shared ownership schemes, which historically only a small number of building societies would.”
From the figures, it also emerged that the age of those purchasing a shared ownership property, on average, had fallen. The majority of sales was to those in their thirties.
Mr Crawford went on to state: “Whereas six years ago it was those in their 40s who looked to buy a shared ownership home, today it is those in their 30s – thanks in part to the Help to Buy: Shared Ownership scheme. We know that location ranks highly on people’s property wish list, which is why is makes perfect sense for those wanting to live and work close to the Capital to look for alternative housing models to enable them to afford the first step on the ladder.”
