Shared Ownership: The next generation of homeownership

Given the huge pressures exerted on the national economy due to the Coronavirus pandemic, prospective buyers are searching for more viable ways to get onto or move along the property ladder without incurring extra unnecessary risk and overstretching themselves financially.

Meaning housing providers have to adapt and provide truly affordable, flexible options outside of the traditional outright sale option that is notoriously difficult to access and save up for without help from the bank of mum and dad.

The pandemic has made customers even more aware of how quickly their situation can change and that they need to be more prudent with their money and assets to ensure longevity and ultimately survival, should the world around them change so dramatically.

Since March 2020, there has been a notable increase in Torus Homes’ customers seeking more affordable and flexible ways to homeownership and of those options, Shared Ownership, has reigned supreme.

Shared Ownership is a financially viable option for many aspirational homeowners – even those whose circumstances have changed as a result of the pandemic – and allows people to part buy, part rent a property.

Originally, applicants bought a 25% – 75% share in a property and then paid a reduced rent on the remaining value of the home. However, in September 2020, the Government announced changes to the Shared Ownership scheme meaning prospective homeowners will be able to get on the property ladder by buying as little as a 10% share in a property.

With lockdown completely redefining how people view and use their homes, there has been a surge in people’s appetites to move and address things that they perceive are lacking in their current home, such as a lack of outdoor space, no dedicated at home work area and not enough bedrooms and Shared Ownership gives people the necessary, flexible and affordable platform they need to change their situation.

Giving people the chance to access a more aspirational property, in a more desirable area and actively encouraging the growth of more diverse, multi-generational communities, this model is working to breakdown socio, economic and cultural boundaries by giving people access to the homes they need and want, which are modern, safe and secure.

So, with the world ever changing and ever evolving, the housing market must develop too and make more affordable options accessible to customers as standard so we can collaboratively contribute to fixing the national housing crisis together, as ethical housing providers.

Article first posted on Place North West.

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