Flaws highlighted in shared ownership properties

  • Shared ownership, which was designed to help people unable to place large deposits and secure large mortgagees get on to the property ladder, is under scrutiny.

    Shared ownership allows aspiring homeowners to buy a part of a new home (between 25% and 75%) then rent the remainder from a housing association, with the option to increase their ownership of the property at a later date.

    Giles Peaker, editor of the Nearly Legal housing law blog, wrote for the Guardian that there is no such thing as shared ownership. Instead he believes that shared ownership is ""just a tenancy, with an expensive down payment for an option to buy the whole property at a later date".

    One person who took part in a shared ownership found that after falling behind on her rent she was evicted from her part-owned property and the court ruled that she had no right to the £30,000 she had already paid for her share.

    Traditional home ownership is unaffordable for most young people and shared ownership was one of the original measures to try to place home ownership within easier reach for people in low and middle income brackets. The problem many are seeing is that shared ownership is much less flexible than renting or the outright owning of a property.

    The selling of a proportion of a shared ownership property is a slow process as demand is low for second-hand shared ownership properties and the sale must often be left to the housing association. This means it can take months to find a buyer and subletting is not permitted so shared owners cannot rent out their property should their circumstances change.

    Shared owners are not exempt from the annual rent increases or extortionate fees common in the private rented sector. Rent on the proportion of the property you don't own is regularly increased and monthly service charges are prone to sudden large increases. You are also solely responsible for repairs and maintenance of the property, regardless of how much you own.

    Only 22% of shared owners have successfully completed the outright purchase of their homes, leaving many to struggle with the problems of trying to sell a part-owned property should they need to move for any reason.

Related articles

  • Read More

    RECENT ANALYSIS FINDS THAT THE HELP TO BUY SCHEME HAS ADDED TO THE INFLATION OF HOUSE PRICES

    The analysis of the Help to Buy Scheme revealed the following:The chief executive of Paradigm Housing Group, Matthew Bailes, said:" ... clearly, it worked well for developers, and for providers, it...

  • Read More

    A NORTH WALES COUNCIL REVEALED THEIR WAITING LIST FOR NEW HOMES HAS REACHED BREAKING POINT

    The north Wales Council revealed their waiting list for new homes has reached "breaking point".According to Clare Budden, Flintshire Council's community enterprise chief officer said:"There are...

  • Read More

    HOMELESSNESS POLICY IS UNDER REVIEW IN A NORTHAMPTONSHIRE COUNCIL

    Kettering Borough Council has amended its letters to homeless residents to let them know of their right to request a temporary accommodation review.According to an ombudsman, Michael King:"People in...

  • Read More

    FINANCIAL CONSTRAINTS HAVE CAUSED THE CLOSURE OF MANY CHILDREN AND YOUTH CENTRES

    Local Government Association (LGA) made the following findings:Chair of the LGA's children and young people board, Richard Watts, said: "The reality is that services for the care and protection of...

  • Read More

    RESIDENTS OF BUILDINGS IN LEDBURY ESTATE, SOUTHWARK, SOUTH LONDON WILL BE MOVED OUT TEMPORARILY

    The buildings in Ledbury Estate in Southwark have been constructed in a similar way to Ronan Point, a tower block in Newham which collapsed in 1968 as a result of a gas explosion, killing three. An...

  • Read More

    THERE IS A DECLINE IN THE HOUSING MARKET IN LONDON AND OTHER PARTS OF THE SOUTH EAST OF ENGLAND

    The Royal Institution of Chartered Surveyors (Rics) made the following findings:Chief Economist at Rics, Simon Rubinsohn:"Sales activity in the housing market has been slipping in the recent month...

  • Read More

    REPORT FINDS THAT PEOPLE ARE INTENSELY SUFFERING FROM LACK OF AFFORDABLE HOMES IN SCOTLAND

    According to the report by "Shelter":Shelter's deputy director, Alison Watson, said:"This report shows the disproportionate impact of Scotland's housing crisis on young people and private renters who...

  • Read More

    NEW REPORT BY THE PUBLIC ACCOUNT COMMITTEE IN WALES COMMENDS HOUSING ASSOCIATIONS

    The report which was put together after nine months of inquiries stated the following:Nick Ramsey, Chair of the Public Accounts Committee, said:"Generally, we found governance and regulation within...

  • Read More

    LONDON COUNCIL URGES THE GOVERNMENT TO MAKE MEASURES TO END LETTING FEES FOR PRIVATE RENTERS

     The London council say urgent action is needed because the government has not provided "a clear timescale to introduce its own measure", Letting Agent Today, reports.Last year, the government had...

  • Read More

    A NEW SCHEME HAS BEEN PROPOSED TO DEVELOP ARTHUR STREET ESTATE IN LONDON

    Wates Residential will help to deliver Orbit's proposed £73m regeneration of an estate in London, after their success with making Larner Road an award winning, 40,000-home, Erith Park, Bexley.Within...

Briefing Signup

 
Quick Contact

Quick contact

Close

Contact us

T 0333 332 1991 (Local rate)

E info@supportsolutions.co.uk