19 September 2016 Shared Ownership Week
is in its fourth year and here we take a look at the Governments focus and the growth of this tenure, increasing opportunities for brokers.Why Shared Ownership?
• 86% of people still want to own their own home, yet it is increasingly difficult for many people to achieve this ambition.
• Analysis suggests that there could be a million households in the rented sector in a position to take up Shared Ownership.
• Some Housing Associations reported that they have TEN prospective buyers for each new Shared Ownership unit. What does Government want to see?
• The Government aims to help one million people into home ownership through government backed initiatives by 2020.
• The Government wants 135,000 new Shared Ownership homes delivered by 2021.
• The Government wants Shared Ownership to emerge as a fourth mainstream tenure.
• The Government wants more private investment (house-builders and private developers) in the delivery and ownership of Shared Ownership.
• The Government wants more mortgage lenders to take up the market opportunities of increased Shared Ownership. Government Support for Shared Ownership
• The Spending Review confirmed the rebranding of the product as Help to Buy: Shared Ownership.
• The 2015 Autumn Statement and Spending Review confirmed an unprecedented £4.1bn for 135,000 new Help to Buy: Shared Ownership starts by 2021.
• This is a significant step up in delivery from the 41,000 new Shared Ownership homes delivered between 2010 and up to March 2015.
• Raised the national income cap on Shared Ownership in England from £60k to £80k (£90k in London).
• The Government estimate this will open up Shared Ownership access to 175,000 more households in the rented sector.
• Removed priority status for Shared Ownership homes from existing social tenants and priority groups defined by local authorities.
• Removed restrictions preventing existing shared owners from buying new Shared Ownership homes.
• Removed restrictions on bedroom numbers for Shared Ownership buyers.
• Already removed restrictions on resale where people have fully purchased out.
For details of all Government Schemes take a look at our Matrix.