Gaps in first-time buyers’ knowledge about shared ownership, which is an affordable housing scheme, could be preventing them from getting on to the property ladder, according to a survey by TML.
Crossed wires
Who you are sharing the ownership of your home with caused the greatest confusion among buyers.
Some 17% of first-time buyers thought that shared ownership meant co-owning with your family. A further 14% said that shared ownership meant sharing responsibility of being a landlord on a property. Another 8% believed it meant owning with a stranger, and a further 7% identified it as owning with a friend.
Some 14% said they didn’t understand shared ownership at all, and another 5% said it meant owning a few rooms in a house.
With 65% either defining shared ownership incorrectly or being unable to do so at all, first-time buyers could be missing out on the opportunity of homeownership, says TML.
Affordability challenges
Over the last 70 years, it has never been a more expensive time to be a first-time buyer than now, according to research from the Building Societies Association.
Affordability challenges, high house prices and the rising cost of living have left first-time buyers with significant barriers to getting on the ladder. The association has called for radical support from the Government to support first-time buyers.
Louise Apollonio, head of corporate accounts at TML, said: “The first hurdle to get onto the ladder is raising a deposit, which is particularly difficult for those renting who are also dealing with steep rental price rises. However, that doesn’t mean that they wouldn’t be good candidates for owning a property. Shared ownership provides an opportunity for first-time buyers to get a step on to the ladder without the need for a huge deposit, allowing them to slowly work up to total ownership of the property.
“We believe that everyone deserves a place that they call home, and are committed to ensuring that our lending practices support our end customers’ real-life situations.”
