Conveyancing firm My Home Move's latest research has revealed that the appeal of shared ownership schemes has risen by over 130% since 2011.
With house prices increasing across the UK by nearly 30% since 2011, the popularity of shared ownership schemes – relaunched with government backing eight years ago via HomeBuy Direct – has also grown exponentially.
My Home Move pored over 100,000 of its home buyer records to discover that, on average, shared ownership purchasers prefer to buy just 21-40% of the property they live in, costing an average of £67,000.
While shared ownership purchases only account for approximately 1% of all property transactions each year, one in five of these (17%) is carried out by first-time buyers.
“For many, the prospect of buying a home outright is still a pipe dream, as prices have risen by around £60,000 since 2011,” Doug Crawford, CEO of My Home Move, commented. “It is no wonder that solutions like shared ownership have grown in popularity, and by the end of 2017 we would expect shared ownership transactional volumes to account for more than 1% of all activity – especially as many lenders are now more willing to lend on shared ownership schemes.”
The age of those buying a shared ownership home has also fallen on average, the research revealed. The lion's share of purchases are now accounted for by people in their mid-thirties. London and the South East is also once again dominant, with between a third and a half of all shared ownership transactions taking place in these regions.
“Whereas six years ago it was those in their 40s who looked to buy a shared ownership home, today it is those in their 30s – thanks in part to the Help to Buy: Shared Ownership scheme,” Crawford continued. “We know that location ranks highly on people’s property wish list, which is why it makes perfect sense for those wanting to live and work close to the capital to look for alternative housing models to enable them to afford the first step on the ladder.”