Shared ownership: The ins and outs of the new way to get onto the property ladder.


With millennials struggling more than any other generation to get onto the property ladder the government has introduced new schemes in order to give younger people a helping hand in the housing market. With a third of young people predicted to still be renting into their retirement, these new schemes are all about reducing deposits and making payments as easy as possible while not compromising on location or quality. With properties for sale in Islington to shared ownership in Sussex, the UK is now paving the way for first time buyers and the future of the housing market.

Shared ownership is all about getting onto the property ladder without a lifetime’s worth of savings. It allows you to part buy, part rent a property while paying less in total than just renting from a private landlord. The main premise is to open up the market and encourage younger people to leave renting behind and make an investment in the long run while saving money and making easy repayments.

The scheme works by allowing you to start with a share between 25%-75% and paying rent on the remaining portion. The share you don’t own belongs to a non-profit housing association with the buyer’s best interests in mind so the rent combined with the mortgage is far more affordable than regularly tenancy costs in the same area. In addition to this you only put a deposit down on the share you wish to own so for 25% of a £200,000 home, a deposit of just £5000 is required. This certainly makes a change from the 10% deposits that are now required after the financial crisis of 2008 caused banks to become far more cautious when it comes to lending.

Shared Ownership also allows you to gradually increase the portion of the home you own through a process called staircasing. This basically means you can ease your way into owning your home at  a pace that suits you and with shared ownership in London and other highly sought after areas you are making an investment for the future. You can increase your share by as little as 10% each time and gradually add to your mortgage until you own the entire home. This means once you decide to move on and sell your home, should you have staircased to 100% you will be able to keep all the profit from any improvements you have made to the property and any increase in value that it has accumulated.

You can find shared ownership in Brighton to Berkshire and with properties for sale in East London and even Manchester, the scheme is fast becoming a new way to buy a first home.


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