Are you tired of renting but finding it hard to save a large enough deposit to buy a home of your own?
Don’t worry, you’re not alone! With the average home in England now costing over 8 times the average individual salary1, 4 in 10 buyers are having to put their dream of buying a home on hold2.
But what if that didn’t have to be the case. Even amid the current economic and housing climate, Shared Ownership could help many buyers unlock their home buying potential.
Smaller deposit
Deposits on our Shared Ownership homes typically start from 5% of the share value that you purchase, rather than the 10% deposits often required on a full ownership property, helping you to stop saving and start moving sooner.
For example, at our Willowbrook Park development in Didcot, 5% deposits start from just £5,000 for a 2 bedroom apartment (based on buying a 40% share for £100,000). The full market value of the apartment is £250,000, meaning the 10% deposit to buy the same property outright would be £25,000.
Affordable monthly payments
One of the biggest misconceptions around Shared Ownership is that it’s more expensive than renting privately. Whilst both living options have their advantages, monthly payments are often cheaper through Shared Ownership (including mortgage, rent and service charge) than if you were to rent privately.
How is that possible? - you might ask. Well, as you’re only purchasing the share of your home that you can afford, typically between 25% and 40%, you significantly reduce the amount you need to borrow as a mortgage, in most cases reducing your monthly payment.
The rent you pay will be subsidised as it’s calculated on the share of the home that we own, and the service charge goes towards the maintenance and repair of communal areas.
Investment for the future
When you purchase a share of a home through Shared Ownership, you’re building up equity in a saleable asset each month, providing long-term financial security.
You’ll also have the freedom to increase your share as and when your finances allow through a process called staircasing. By increasing your share, you reduce the amount of rent you pay, and over time you can work towards full ownership of your home.
What’s more, the value of your share could increase if the value of the property increases, meaning you’ll have more profit to invest should you decide to sell.
Your home, for as long as you want
Contract renewals. Properties being sold mid-tenancy. Sometimes it can feel like you’re at the whim of the landlord. That’s not the case with Shared Ownership, where you own your share of your home for as long as you desire, giving you greater control of your living situation.
Lower maintenance
If you buy a new build Shared Ownership property all the fixtures and fittings in your home will be brand new, meaning they won’t need as much maintenance as an older rental property.
Also, most new build Shared Ownership homes receive a 2-year guarantee from the house builder and a 10-year structural warranty from the National House Building Council or a similar warranty provider, offering long-term peace of mind should any problems arise.
More personalisation
Your new home will be a blank canvas, and you’ll have more freedom to modify and decorate it as you please, allowing you the opportunity to create your perfect home. What’s more, you’ll benefit from any major home improvements you decide to make in the future.
Our locations
We have developments across the south of England, from Devon to Essex and plenty in between, including London, so whether you’re looking for city centre living, the balance of the suburbs, or the slower pace of the countryside is calling, we’ve got something for everyone. To view our full list of live developments, click here.
[1] To view the housing purchase affordability report from the ONS, click here
[2] To read Halifax’s first-time buyer report, click here