10 November, 2014
This week saw the publication of Social Housing magazine's 2014 shared ownership sales report.
The report quotes that shared ownership first tranche sales across England fell by 10 per cent in 2013/14 but that more modest reductions were seen outside London and goes onto to say that the fall may be due to lack of supply rather than demand.
The Council of Mortgage Lenders has recently commented that it wants politicians to help young buyers by recognising the shift towards shared ownership as a permanent tenure and reforming the Stamp Duty Land Tax System to assist. According to CML data, even though the number of first-time buyers has soared over the last year, overall numbers are still falling at around half their long-term average of approximately half a million. Again, it's all down to cost - their calculations show that house prices have doubled since the mid-90s while earnings have only risen by 21%, and the continued lack of housing supply will only serve to bulk up house prices further. Getting that all-important deposit is the key barrier, and is likely to remain so for some time.
At Forbes, we have however, seen an increase in the amount of shared ownership sales we are dealing with. "Over the last year…," comments Lucy Worrall, Partner and Head of Housing and Regeneration (Property) at Forbes, "…the pattern has definitely shifted. Whereas 1 to 2 years ago new development schemes were almost all for 100% affordable rent, we are seeing a marked increase in the number of development schemes with a mix of both affordable rent and shared ownership. We are not quite there in terms of pre 2008 numbers but, over the last 18 months, there has been a noticeable change from schemes with all rent to a mix with a substantial proportion of new units now being for shared ownership sale."
Forbes provides a specialist and comprehensive service for registered providers in connection with development schemes including shared ownership.
For more information contact Lucy Worrall, Partner and Head of Housing and Regeneration (Property) on 01254 222393 or by email Lucy Worrall