From having to share your home to only being eligible if you are a first time buyer, there are plenty of myths about what shared ownership entails. In reality, it’s a practical way for people to get on to the housing ladder with a lower deposit than they would usually need and is one way for people to break out of renting and start building equity on a home to call their own.
The Office for National Statistics observes that private rents increased by 5.1% in the year to June 2023, and Shelter reports that more than 2.5 million people are consistently struggling to pay their rent – a 45% jump since last April. Also, with the latest Rightmove data showing that there are 20 viewing requests for each rental home, whichever way you look at it, renting is tough. With that in mind, it’s even more important to cut through the chatter surrounding shared ownership. Let’s look at a few common misconceptions.
SHARED OWNERSHIP IS ONLY FOR YOUNGER BUYERS
Not always. Andrew Bolland and his wife purchased a 25% share of a two bedroom property in Kirk Langley, Derby, when they retired. Andrew explains, “With our retirement plans in mind, we had discussed the potential to move for a while. With the cost of living crisis and rising rental prices, we became increasingly worried about whether our monthly outgoings would increase, or if our landlord would eventually sell our rental home. This triggered our interest in buying our own home, something that was only possible through the shared ownership scheme.”
SHARED OWNERSHIP MEANS SHARING YOUR HOME
Not at all. In fact, for first time buyer Petar Georgiev, purchasing a 40% share of a home at Dominion in Doncaster meant he could move from sharing with 12 other renters to living alone. Petar comments, “The prospect of having a property to myself, as well as making a financial investment for my future instead of paying increasing rent, were two main reasons for my decision to move. I was so pleased when I found Dominion – it means that I no longer have to share a kitchen or a bathroom, and I have a place to call my own!”
YOU AREN’T ALLOWED PETS IN A SHARED OWNERSHIP PROPERTY
Another myth. Ellie Heritage, Tom Smith, and their pets recently moved into their newly purchased shared ownership home at Maple Fields in Bordon, Hampshire. Ellie reports, “We looked into buying privately but we could only afford a one bedroom flat, and while it is just the two of us at the moment, we already had a few pets and plans to get a dog… By using shared ownership, we have been able to buy a bigger property in an area that otherwise would have been unaffordable. We now also have our dog!”
YOU HAVE TO BE A FIRST TIME BUYER
This is perhaps the most persistent misunderstanding. No, you don’t have to be a first time buyer. Shared ownership exists to help people who can’t purchase a property on the open market. That includes buyers who used to own homes or are in the process of selling – buyers just have to meet the eligibility criteria.
Whichever way you buy a home, you need to do your research and speak to experts to help you make the decision that suits your needs. Different housing providers will have different criteria, but at Places for People, we want to make sure our prospective customers have as many options as possible to join one of our thriving communities.
Find our more: homestobuy.placesforpeople.co.uk
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