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New shared ownership measures could adversely affect supply

4 February 2021 | General

The government’s move to change the shared ownership scheme so people can purchase a 10% share, down from 25%, could adversely impact supply.

That’s because providers would still be responsible for repairs and maintenance for the first 10 years, making it less attractive for them.

This is according to a report from So Resi, the shared ownership brand of housing association Metropolitan Thames Valley Housing, along with Cambridge University.

The study also found that single adults without children (50%) are the most common buyers of shared ownership properties (50%) followed by childless couples (35%).

It’s most common to buy in your late 20s, while the average value of shared ownership properties in 2018/19 was 42% of £265,000, with a deposit of £24,600.

Dr Gemma Burgess, acting director, Cambridge Centre for Housing and Planning Research at Cambridge University, said: “There is consensus that the UK has a housing crisis and that greater effort needs to be made to increase housing supply.

“Shared ownership has an important role to play in delivering new build housing supply and in meeting the need for affordable homes.

“The government should do all it can to make it as easy and simple for providers to increase their pipeline of shared ownership homes, to reduce cost and complexity from the system, and to ensure that grant levels are sufficient to ensure a strong supply of shared ownership going forward.”

This post has originally been featured in Property Wire.