While house prices are on the decline, most first-time buyers will find that the cost of buying a home is still out of their price bracket. However, it’s not time to give up on your dream of home ownership just yet. Eager to own your own home, but unable to buy on the open market? Shared Ownership is a fantastic option for cash-strapped first-time buyers, making the dream of ownership much more achievable.

You may have heard a lot about the scheme, but how can it help you? Get acquainted with all of the perks of Shared Ownership below:

How does Shared Ownership work?

Shared Ownership is an affordable home ownership scheme where you buy a smaller share of your home, while paying subsidised rent on the part owned by your housing association. You can buy a share as low as 25%, or as high as 75%. The rent that you pay will depend on how much of the share you own - expect to pay around 3% of the share that you don’t own.

Perks of Shared Ownership:

Affordable

The biggest advantage of using Shared Ownership is that it makes home ownership much more affordable. While you normally need a big deposit to buy a home on the market, Shared Ownership lets you buy a smaller share of your property, resulting in a more achievable deposit size. If you want your own home but are put off by the long process of saving a deposit, Shared Ownership could be the solution.

Access to great apartments

Shared Ownership might be more affordable, but that doesn’t mean you need to settle for a lower-quality home. Instead, Shared Ownership gives first-time buyers the opportunity to live in some of the most stunning homes in London. Most Shared Ownership homes are new build properties that come with the latest in fixtures and appliances, meaning you won’t have to schedule an appointment with the repairman any time soon. You’ll also be given a blank slate to design and decorate your home as you wish! If you prefer something more traditional, Shared Ownership also helps you buy resale properties.

 

Live in great areas of London

Shared Ownership doesn’t just give you access to the nicest looking homes in London - it also makes it possible to live in the best areas. Do you have your eye on a specific area in London, but always found the property prices too high? Buy with Shared Ownership, and that’s yesterday’s problem. Whether you want to let loose in the lively borough of Greenwich, or explore a leafier side of life in East London, Shared Ownership opens plenty of doors.

Flexibility

No matter your financial circumstances, Shared Ownership gives you a lot of flexibility to buy the home you want. When you apply for a home using the scheme, you get the option to buy the share size that is best for you. You could start with as little as a 10% share, or even a larger share of 50% if you have enough saved up. As soon as you feel ready, you’ll then get the option to increase your stake in your home.

A bridge to future home ownership

You might be buying your home on a ‘shared’ basis, but part ownership doesn’t need to last forever. After a set period of time (usually around 2 years), Shared Ownership enables you to buy additional shares through a process known as ‘staircasing’. The more shares you buy, the cheaper your rent becomes, and the more of your property you own. Best of all, you can do this when - and only when - you are ready, there’s no rush.

 

Cheaper rent than on the open market

If you are renting a flat in London, you’ll already know that prices in the capital can be sky-high. But with Shared Ownership, you can rent your home at a lower rate than you’d get on the open market. The rent you pay is usually no more than 3% of the share owned by your housing association. Additionally, you can lower the price of rent over time as you buy more shares of your home.