But people need to be more educated about it
Lenders and housing associations agree that shared ownership, as an affordable housing option, is growing - but it does not have enough consumer awareness and understanding.
The topic of shared ownership was a focal point at the inaugural New Build and Affordable Housing Event hosted by Just Mortgages, where three panel sessions took place featuring housing associations, property providers, and a range of shared ownership lenders.
Shared ownership currently accounts for around 2% of housing stock, but housing associations are building more of these homes. The government has also pledged funding for up to 90,000 new shared ownership properties in the next five years.
It is also anticipated that more lenders will offer shared ownership mortgages and brokers should be prepared for a rise in enquiries.
Read more: Demand for HTB and Shared Ownership reaches record high.
The panellists agreed that advice is key for homebuyers and brokers have a part to play in guiding them towards the most appropriate solution.
They emphasized that education will be vital to raising awareness, not only among first-time buyers, but also among previous homeowners.
Read more: What brokers should know about shared ownership reforms.
According to John Doughty, financial services director at Just Mortgages’ new build division, as the Help to Buy scheme ends in March 2023, shared ownership is one option that will fill the void.
“Lenders and brokers are getting less Help to Buy enquiries from customers as restrictions were introduced a year ago and the scheme nears the end of its shelf life. Instead, we are talking to more people wanting to know if they are eligible for shared ownership,” Doughty said.
Lenders that participated at the event and in the panel sessions included Barclays, Halifax, Nationwide, Santander, Leeds Building Society, Skipton Building Society, Kent Reliance, and Kensington Mortgages.
Housing associations and property providers on the panel were from Sage Housing, SO Resi Partnerships, NU Living, and Swan Housing.
