Have you wondered whether you will ever make it on to the property ladder? If so, well maybe it’s time you considered shared ownership. Jane McGowan finds out more...
According to figures from Rightmove, the average cost of a terraced property in Surrey in 2018 was £516,087; the price for an apartment came in at £384,134. While this latter figure is significantly lower, it would still require a purchase deposit of more than £17,000 – and that is based on the smallest permissible amount of 5%.
Take into account the fact that the average wage earner in Guildford takes home just short of £30,0001, and you can see the dilemma.
However, there is an alternative – shared ownership which enables would-be buyers to purchase a ‘share’ of a property. A mortgage is paid on the share that is owned, and rent is paid on the remainder, typically to a local authority or housing association.
Vikki Walker head of new homes, sales and marketing at Southern Housing Group explains: “Shared ownership allows people to buy between 25%-75% of property – whatever they can afford, and the rent [on the remaining amount] is usually subsidised. It’s actually more affordable than private renting and it gives you a vested interest in a home. Should the property increase in value, you will make money too.”
A key positive of shared ownership is the fact that the deposit required relates only to the amount you are buying not the property as a whole.
“Even when people have good jobs, saving such high deposits is hard,” says Vikki. “Fifteen years ago, finding a deposit wasn’t such a problem but as property prices have outstripped wages, people have found it harder and harder.”
Add to this the cost of private renting across the county which averages at £486 per week, and saving for a home of one’s own is nigh-on impossible.
There are, however, many myths surrounding shared ownership that may be deterring would-be beneficiaries. These include the notion that the homes are not in the good parts of town; only one-bedroom properties are available and that the scheme is only open to young, single people.
“Yes many apartments are available under the scheme, but that is because many first-time buyers are looking for those,” says Vikki. “There are plenty of family homes out there, as some people may want to buy bigger, aiming to have a house that will suit their changing needs.”
Vikki also insists the developments reflect areas of greater housing need, often in upcoming communities benefitting such growth as improved/new schools and more effective transport links.
“It’s about changing perceptions,” says Vikki. “For anyone who dreams of owning their own home, shared ownership is well worth looking into.”
Current shared ownership properties:
- Queensway, Redhill – 1-bed apartment, £58,750
- North Court, Camberley – 2-bed apartment, £76,500
- Maple Row, Cranleigh – 2-bed apartment, £78,250
- Bay Tree, Oxted – 2-bed house, £85,000
- Hindhead – 2-bed house, £124,000
Visit: sharetobuy.com
