Myth busters - is it hard to qualify for shared ownership?
In the fourth of our series exploring the myths surrounding shared ownership, we discuss whether it really is difficult to qualify for a shared ownership scheme, and what your customers need to know about eligibility.
A traditional perception of shared ownership is that you need a low income to qualify. However in April 2016, the Government will be raising the income threshold to any household with an income under £80,000, and under £90,000 inside the capital, opening out the scheme to 175,000 more households across the UK. With many first time buyers locked out of the market by escalating house prices, shared ownership is fast becoming a viable option for buyers struggling to get a foot on the ladder.
Previously, priority was given to those in certain professions such as key workers, with local councils setting their own further criteria. However, from April these rules will be removed, with the only restriction on the scheme being the household income threshold. This will open the scheme up to anyone who meets the household income criteria, no matter what their profession.
This could be especially beneficial to first time buyers in London, who often can’t afford the large deposits needed to purchase their own home. In some cases, buyers only need to put down a 10% deposit on the share being purchased, which in many cases could be less than £10,000 - a rarity in the capital.
While many things must be considered when entering into a shared ownership scheme, the new changes coming in from April mean that first time buyers will have more options available to help them make that vital first step onto the ladder.
To find out more about the products available from Leeds Building Society and shared ownership, call our business development team on 03450 50 5555.
This article contains public sector information licensed under the Open Government Licence v3.0 www.nationalarchives.gov.uk/doc/open-government-licence/version/3/
 As above