"It’s encouraging to see so many consider, or have taken up, this avenue to purchasing property as it gives many buyers the opportunity to get a foothold onto the ladder they otherwise may not have had. It also allows buyers to build their wealth creation when it suits them"
- Chris Kirby - TML
Half of first-time buyers would consider or have considered using Shared Ownership as a means to getting onto the property ladder, according to new research from The Mortgage Lender.
With affordability concerns prevalent among many looking to become homeowners, Shared Ownership allows those aspiring homeowners to part buy part rent a property that may have otherwise been unaffordable for them.
While TML’s research found that 65% of first-time buyers were unsure what Shared Ownership means, once this was made clear half said they would consider or are already considering this as an option to buy a property.
Of those who have bought their first home in the last five years, 17% have a Shared Ownership property. 19% of those yet to buy have considered utilising Shared Ownership. Of this, just over 12% say they are likely to buy using the scheme.
Looking at the reasons why first time buyers have considered using Shared Ownership, 26% said it was because it allows them to slowly build up to ownership of the property when it suits them.
26% said they wouldn’t have been able to afford the property without Shared Ownership, therefore helping them reach their homeownership goals. 25% said it meant they could buy a property much quicker than first thought, while 24% said their monthly repayments worked out much cheaper than if they’d got a full mortgage or rented.
For 20% of respondents, the scheme means they are able to afford to live where they want to live, and this is especially the case in places like London (25%) where the average property price in the capital is £518,000. 19% said they wouldn’t have been able to get onto the property ladder at all without Shared Ownership.
Chris Kirby, Head of Sales at TML, comments: “Affordability continues to be one of the biggest barriers for prospective buyers when it comes to getting onto the property ladder. As a result, it can mean many seek help elsewhere to raise the funds for purchasing a property, or otherwise make certain sacrifices, be it location or property type, to get on the ladder.
"Shared Ownership, however, is a well-established option that optimises affordability and creates greater access to those looking to achieve homeownership status.
“It’s encouraging to see so many consider, or have taken up, this avenue to purchasing property as it gives many buyers the opportunity to get a foothold onto the ladder they otherwise may not have had. It also allows buyers to build their wealth creation when it suits them.
"Our own Shared Ownership proposition also looks to provide an even greater range of possibilities for customers with smaller deposits, be that by optimising affordability based on how we assess self-employed and complex incomes or by taking a more pragmatic approach to past credit issues.”
