31 January, 2019
According to YouGov national research recently commissioned by Leeds Building Society, three-quarters of people in the UK know about Shared Ownership. However, the research revealed that around 40% of 18-24 year olds had limited awareness of the scheme, despite being the most likely age group to benefit from it.
Shared Ownership was originally introduced to provide an opportunity for people to purchase a share of a property and then pay rent on the rest. However, out of the 18-24 year olds aware of the scheme, 20% revealed they had no understanding of Shared Ownership beyond knowing it existed.
The scheme offers a realistic way of getting onto the property ladder and is a proven formula that helps individuals secure a home, even when they cannot obtain a traditional mortgage. However, the research shows that 26% of 18-24 year olds thought that Shared Ownership meant buying a property with family, a partner or friends.
Once made aware of the accurate definition of the scheme, 24% thought they would be 'very likely' or 'fairly likely' to use the scheme in the future.
In our experience, the ages of the individuals buying the properties are mixed. When acting on a new build Shared Ownership purchase we find that younger people (normally between the ages of 25-35) are using the scheme because it enables them to purchase larger houses at a more affordable price or properties in an area they would not otherwise be able to live in. In most cases, they also have the option to purchase a larger share and staircase to 100% ownership.
Given the above information, it would appear the importance of increasing the awareness of the scheme (especially to individuals aged between 18-24) is something that could be looked at by the government going forward. This would enable more individuals to benefit from the scheme and allow them to secure a more affordable home.
The Housing & Regeneration Property department at Forbes act on a high volume of Shared Ownership plot sales and in most cases we act on the whole development from beginning to end. This enables the team to oversee the whole process from the acquisition of the land through to selling the property to the buyer, ensuring a smooth and quick process throughout. We work closely with our clients and spend time on providing the most efficient bespoke service to suit their needs.
For more information contact Rob Parkinson in our Housing & Regeneration department via email or phone on 01772 220199. Alternatively send any question through to Forbes Solicitors via our online Contact Form.