Shared Ownership - the fourth mainstream tenure?
With the property market booming and house prices at an all-time high[i], could Shared Ownership be the answer to potential homeowners getting a foot on the housing ladder?
We know Shared Ownership works for customers but despite its success, Shared Ownership remains relatively unknown and misunderstood by prospective buyers. The sector is keen to dispel myths and misunderstandings, especially as it’s now open to more customer groups than ever before – although they may not know it.
Now seems like the perfect time to consider what we can do to make products such as Shared Ownership grow in popularity. In doing so, we could reframe the market for many first time buyers, opening up more opportunities and helping to regenerate parts of the UK, creating more diverse communities.
Kelly McCabe, Managing Director of TMP The Mortgage People said:
“Shared Ownership is changing, but so are its buyers. The new model that has been released shows that moves are being made to address the needs of the Shared Ownership buyers, allowing a more flexible approach to the initial purchase, and giving more long-term security.
“With the speed of house price increases being akin to a runaway train, Shared Ownership continues to serve the needs of more people. The support of lenders in this ever-growing market means we are able to help those, that without affordable housing, would never have the opportunity to own their own home.”
In addition to the work being done to raise awareness of the benefits of Shared Ownership with borrowers, increased intermediary support could also help to truly bring Shared Ownership into the mainstream for homebuyers.
Advising customers on the best mortgage options for their personal circumstances offers an opportunity to consider Shared Ownership during that process, rather than as an afterthought when more ‘conventional’ options have been exhausted.
John Doughty, Financial Services Director New Build Division for Just Mortgages said:
“As I have stated in recent articles, I strongly believe that Shared Ownership is key as we move through the next few years. As a country we are driving a nation of homeowners and affordable housing is a key part of this goal. Given the changes to Help to Buy and its end date fast approaching focus begins to change to other viable options.”
Similarly, intermediaries’ professional expertise in arranging and explaining financing offers additional reassurance to home buyers who may feel less confident because of the apparent complexity of Shared Ownership purchase.
What does the future hold for Shared Ownership? We've spoken to Jon Lord, Managing Director for Metro Finance– Meridian Group Company, here’s what he had to say:
“Right now, Shared Ownership is shining! With house prices rocketing the total flexibility of Shared Ownership really shows how dynamic the product is. Helping buyers onto the ladder with prices from £120,000, through to over £1million.
“Demand has skyrocketed over the last twelve months across the UK. We often see five buyers per property. With an abundance of lenders including Leeds Building Society offering 95% lending, making it much easier to gain a footing on the ladder.”
If you’d like more information on Shared Ownership, you can visit our dedicated Shared Ownership page or get in touch with your BDM. As winners of the What Mortgage Award for Best Shared Ownership Mortgage Lender six years running (2016-2021), you can trust you’re in good hands.