New Report shows Shared Ownership keeps Home Buying Affordable
11 October 2010
The report, ‘Shared Ownership: Facts & Figures’, contains 22 facts about shared ownership!
New research from a group of 21 housing associations shows how buying a home can be affordable for people earning £20-25,000 a year, even though homes still cost, on average, a multiple of 13.5 times average incomes in London.
Nearly half (44%) of all buyers of shared ownership homes in 2008/09 had household incomes below £25,000 and nearly a quarter had incomes below £20,000.
People can afford to buy a shared ownership home at a younger age too, despite the high deposit demands of mortgage lenders. The average age of a shared ownership home buyer is 32, compared to an average of 37 years for first time buyers who do not have financial assistance with a deposit from parents or relatives.
The report, ‘Shared Ownership: Facts & Figures’, contains 22 facts about shared ownership (also known as New Build HomeBuy) which illustrate its importance to the housing market, its wider social and economic value, and its ability to support the Government’s plans to promote an age of aspiration in housing.
HousingOptions. London’s HomeBuy Agency service, which is jointly delivered by L&Q and Metropolitan Home Ownership (MHO) actively support the campaign. Bernie Conroy, MHO Managing Director, said:
“Over 170,000 people have bought a shared ownership home in the last 30 years. As house prices have risen out of financial reach and mortgage lenders have increased their deposit requirements, shared ownership has played a key role in helping younger working households to get onto the housing ladder. A measure of the success of shared ownership is that demand for shared ownership homes now outstrips supply, which is worrying news for potential home buyers seeking out an affordable home ownership option and is why we are actively involved in supporting the ‘Promoting Shared Ownership’ campaign.’
“Our potential customers don’t qualify for scarce social rented housing, but can’t afford to buy on the open market or to pay high private sector rents. Shared ownership offers good quality housing and sustained affordability.”
Nic Bealey, L&Q Director of Strategy, Marketing & Sales, said:
“Our new report shows that the Government must continue to fund a strong programme of shared ownership building over the coming years, even while public spending is cut. We need these homes to give people a decent housing choice and to help meet aspirations. Working families on modest incomes deserve a fair housing future, to improve life in our local communities and society as a whole.”
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