Shared Ownership can only benefit first time buyers in the long run.
Kevin Sims, Director of SO Resi explains why
Earlier this year, Leeds Building Society published a staggering piece of research in its Taking the Longer View report, revealing “Shared Ownership is forecast to be cheaper than private rent in 93% of areas across England over 10 years”.1
With the UK housing crisis affecting renters so drastically (renters face a disproportionate increase in living costs compared to homeowners2), this research demonstrates the value of purchasing through Shared Ownership. Serving those who would ordinarily be priced out of the property market, Shared Ownership offers first time buyers affordable mortgage and rent options right now as well as peace of mind and housing security for the future. Leeds Building Society estimates that “by year 10, shared owners are on average £29,000 better off than private renters, peaking at £42,000 in London”.3 Talk about benefiting in the long run!
Why does this matter for first time buyers?
Shared Ownership was established more than 40 years ago to help make homeownership more affordable for first time buyers. It’s helped thousands of aspiring homebuyers since and based on the forecasts from Leeds Building Society; it’s going to help first time buyers in the future too.
How does Shared Ownership work?
Shared Ownership is a partial ownership scheme, enabling a person to purchase a percentage share of a property. Buyers typically take out a mortgage on the portion of the home they are buying, paying a fractional monthly rent on the remainder. Shared Ownership helps to bring homeownership into reach of those with lower earnings or smaller deposits, helping them to buy within their means.
The scheme is designed to offer a long-term route to full ownership over time, through a process called staircasing, which allows shared owners to purchase additional shares in the future. Although this incremental increase might seem like an additional expense in the present, Leeds Building Society predicts that the long-term financial gains of a property purchased through Shared Ownership are likely to be even greater if the owned share of the property is increased over time.4
So, who are we?
We’re SO Resi, a Shared Ownership provider with a track record for enabling homeownership for first time buyers. We create homes across the South East which are accessible for people on a lower budget – because we believe that nobody should be locked out of homeownership.
We’ve pioneered the way for improving standards by devising 1% annual staircasing, which has been implemented and rolled out nationally with Government support. Shared Ownership is at the heart of what we do, so much so that we have a dedicated brand for the scheme. Our buyers can trust that they’re dealing with experts when they buy a home with us.
If you’re wondering whether Shared Ownership is right for you, find out more about us online via sharedownership.co.uk
1 thinkhouse.org.uk/site/assets/files/3151/lee0225.pdf
2 independent.co.uk/news/uk/home-news/uk-rent-costs-inflation-figures-b2760049.html
3 thinkhouse.org.uk/site/assets/files/3151/lee0225.pdf
4 thinkhouse.org.uk/site/assets/files/3151/lee0225.pdf
SO Resi Cranleigh
Located in a village setting amid the backdrop of the Surrey Hills Area of Outstanding Natural Beauty, SO Resi Cranleigh offers a laid-back lifestyle at an affordable price point for young professionals and families. All homes have allocated parking, cycle storage and communal gardens for all to enjoy, with Juliet balconies to selected homes.
Pricing: Estimated from £30,000 for a 10% share of a one bedroom apartment (full market value £300,000).
sharedownership.co.uk
SO Resi Hayes
SO Resi Hayes offers 35 studio, one, two and three bedroom apartments launching in June. Here you’ll find an excellent opportunity for first time buyers and young professionals to get on the property ladder in one of London’s best-connected locations, tucked in a peaceful canalside location.
Pricing: Estimated from £71,875 for a 25% share of a studio apartment (full market value £287,500).
sharedownership.co.uk
SO Resi Peckham
There are 113 brand new apartments at SO Resi Peckham, located on Old Kent Road, now available to reserve with Shared Ownership or London Living Rent. Homes will offer open-plan living spaces, with balconies or terraces as standard. SO Resi Peckham will be a car-free development offering cycle storage and an Aldi store on the ground floor.
Pricing: Estimated from £106,250 for a 25% share of a one-bedroom apartment (full market value £425,000).
sharedownership.co.uk
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
