Shared own­er­ship now seen as a key route onto hous­ing lad­der

The Oban Times - - Property -

SHARED own­er­ship is now seen as one of the key ways to get onto the hous­ing lad­der, a re­port launched by the Char­tered In­sti­tute of Hous­ing (CIH) and Or­bit re­veals.

Shared Own­er­ship 2.1, pub­lished by the CIH and Or­bit, high­lights the progress of shared own­er­ship, which of­fers po­ten­tial buy­ers the chance to pur­chase part of their home and then pay rent on the re­main­ing share.

The re­port shows the ten­ure is af­ford­able across the vast ma­jor­ity of the UK, that it is sig­nif­i­cantly over-subscribed and that the sec­tor has ca­pac­ity to build many more homes.

It also re­veals shared own­er­ship is now one of the best known ways of get­ting onto the hous­ing lad­der, with some 34 per cent of the 2,200 adults polled by Ip­sos MORI say­ing they knew about shared own­er­ship, com­pared to 32 per cent who knew about right to buy and 28 per cent who knew about the help to buy eq­uity loan.

The lat­est re­port comes two years af­ter CIH and Or­bit’s ini­tial re­search into shared own­er­ship, which urged the gov­ern­ment to in­vest in build­ing more homes for the ten­ure. Since then, £4.1 bil­lion of fund­ing has been ear­marked to build 135,000 new shared own­er­ship homes and the el­i­gi­bil­ity cri­te­ria have been re­laxed.

Gavin Smart, deputy chief ex­ec­u­tive of the Char­tered In­sti­tute of Hous­ing, said: ‘ What this re­port shows is that shared own­er­ship is now a pop­u­lar and af­ford­able route for many peo­ple in the UK to get a home.

‘As house prices con­tinue to rise, shared own­er­ship is an op­tion for the grow­ing group of peo­ple for whom home own­er­ship is in­creas­ingly out of reach, but who don’t have the level of need to qual­ify for so­cial hous­ing.

‘It is pleas­ing to see more gov­ern­ment fund­ing be­ing di­verted to­wards shared own­er­ship as this re­port makes it clear we need many more homes to cater for grow­ing de­mand.’

Boris Wor­rall, ex­ec­u­tive di­rec­tor of fu­tures at Or­bit, said: ‘ This re­search shows that shared own­er­ship is gain­ing real mo­men­tum as a pop­u­lar and well-known route into home­own­er­ship for thou­sands of peo­ple who would oth­er­wise be priced out of the mar­ket.

‘Gov­ern­ment sup­port and the sec­tor’s am­bi­tion, along­side bet­ter mar­ket­ing and man­age­ment, in­di­cate an even brighter fu­ture for this af­ford­able and as­pi­ra­tional prod­uct.’

Other key find­ings from the re­port in­clude:

• Some 102,848 shared own­er­ship homes have been built since 2001, with hous­ing as­so­ci­a­tions now manag­ing over 54,000.

• The av­er­age age of a shared owner is 33 and their av­er­age in­come is £33,558.

• 85,000 ap­pli­ca­tions were made for the 8,000 shared own­er­ship homes avail­able last year.

• Only 18 per cent of the peo­ple sur­veyed hadn’t heard of shared own­er­ship.

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