Flaws highlighted in shared ownership properties
- 06 Sep
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.
- 02 Nov
THE ONS PLANS TO CHANGE THEIR DECISION TO MAKE HOUSING ASSOCIATIONS PUBLIC BODIES
According to reports by 24 Housing, the ONS said the following:Gavin Smart, Chartered Institute of Housing's deputy chief executive also said:"Although we have been expecting this decision for some...
- 30 Aug
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...
- 22 Aug
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...
- 17 Aug
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...
- 15 Aug
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...
- 11 Aug
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...
- 10 Aug
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...
- 07 Aug
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...
- 02 Aug
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...
- 31 Jul
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...
Responding to the DWP Consultation: Housing Benefit Reform - Supported Housing "I found the event informative and timely it helped me to complete our response to DWP without which I would have struggled." S.S. - Safe House