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Shared ownership changes could help 175,000 on to housing ladder

Posted: 22nd June 2016   In: Residential Conveyancing

Changes to the shared ownership rules could help an extra 175,000 people on to the housing ladder, according to the government.

Shared ownership allows people to ease their way into the property market by purchasing a share in their home rather than having to pay the full amount. They only have to a find a deposit of 5% of the price of the share they are buying.

They then pay rent on the part they don’t own but can increase their stake over the years if they so wish.

The scheme has been available since the 1980s but has been restricted by local councils dictating who should be a priority based on a wide of range of factors from salary to profession, to where the buyer comes from.

Under new measures that came into effect in April, the scheme is now available to people of any occupation. Income caps have also been raised to £90,000 in London and £80,000 throughout the rest of the country.

The government has provided the following table of how the scheme could apply in different regions.

 

Property type

Typical shared ownership price

25% share

5% deposit on 25% share

North East

3 bed house

£125,000

£31,250

£1,563

North West

3 bed house

£153,000

£38,250

£1,913

Yorkshire & Humber

2 bed house

£115,000

£28,750

£1,438

East Midlands

2 bed house

£130,000

£32,500

£1,625

West Midlands

2 bed house

£135,000

£33,750

£1,688

East of England

2 bed house

£175,000

£43,750

£2,188

London

1 bed flat

£275,000

£68,750

£3,438

South East

2 bed flat

£190,000

£47,500

£2,375

South West

2 bed house

£160,000

£40,000

£2,000

Please contact Dipak Odedra or Shyam Patel if you would like advice about the legal aspects of buying or selling a home.

Posted by: Dipak Odedra
Residential Conveyancing
Berkhamsted Office