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By Roy Hind, Countrywide Shared Ownership Director
Shared Ownership has come a long way. Since its inception four decades ago it has become an established fixture in the housing landscape. Now, more than 200,000 households live in a shared ownership home. There were over 13,400 Shared Ownership completions nationally in 2018, and Rightmove listed around 2,500 second hand Shared Ownership properties in Q4 2018: 69% more than in Q4 2010.
Shared Ownership allows buyers to get on the property ladder offering long-term stability without overstretching themselves. Deposits are usually lower than buying on the open market and monthly repayments often work out cheaper than buying outright or renting privately.
Purchasers have the option to buy more shares of their home in the future via a process known as ‘staircasing’. In most cases, purchasers can staircase all the way to 100%, in which case they are no longer required to pay any rent, just their mortgage along with any relevant service charges and ground rent. It is not normally necessary to pay Stamp Duty on the share on an initial purchase and unlike private renting, they have security of tenure. Owners also have the option to sell their shares at any time.
Countrywide New Homes feature a specialist team of Shared Ownership experts who focus solely on this area of the business. Our experience and expertise in part-rent-part-buy schemes enables us to advise and support both clients and purchasers through every step of the sales process. Our shared ownership sales program has increased threefold over the last 2 years, and we now sell on behalf of 24 clients and have over 2200 homes on the market.
Once Help to Buy draws to a conclusion, as Government states it will in 2023, Shared Ownership will become the main route to owning a new home for those unable to access the market. This could increase demand for Shared Ownership homes by over 15,000 homes per year.
We see this as a great opportunity for Countrywide New Homes and the branch network.