How shared ownership can help first-time buyers onto housing ladder
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Savills’ latest forecasts predict that house prices in the East of England will increase by an average of 8% by the end of this year – and by 18% by 2025.
As a result, first-time buyers are likely to be increasingly reliant on government schemes and, where available, the generosity of the bank of mum and dad.
With Help to Buy coming to an end in 2023, many buyers may well turn to shared ownership as an alternative way of getting on to the housing ladder. The initiative is now an established fixture on the housing landscape, with more than 200,000 households signed up throughout the UK.
Put simply, shared ownership involves buying a share in a property and renting the rest through a housing association. You can normally buy between 25% and 75% of your chosen home and you’re also given the option of buying more (called ‘staircasing’) when you can afford to do so.
While monthly costs are generally in line with those offered through Help to Buy, shared ownership provides less barriers to potential homeowners because the initial deposit required is so much less.
This month – in partnership with HSPG – we will be launching a new shared ownership scheme at Generator Group’s Laureate Fields development in Felixstowe.
Potential buyers will be able to purchase 60% equity – although they may be able to buy more depending on affordability.
While shared ownership is primarily targeted towards first-time buyers with a household income of less than £80,000 (£90,000 in London), there are
For example you may still be eligible if you already own a home – however you will have to be in the process of selling this in order to apply. You must also be buying a home to live in yourself and not looking to rent it out.
It’s also worth bearing in mind that when selling the property you will need to approach the housing association first. They then usually have an eight-week exclusivity period to find a buyer for your share of the property.
If the housing association cannot find a buyer in those eight weeks, you are then allowed to sell the property via an agent on the open market – the property can be sold on shared ownership or full ownership.
If you’d like to find out more about the shared ownership options available at Laureate Fields then please do get in touch. We can help assess your situation and advise on potential next steps.
For more information or advice about the new homes market in Suffolk contact Max Turner at Savills Ipswich on 01473 234826 or by email at MTurner@savills.com
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