Shared ownership hope as 'housing costs soar'
THE RISING cost of renting from private landlords strengthens
the case for shared ownership as a truly affordable
way of making the home ownership dream come true.
That's the message of hope for aspiring homeowners from Bev
Hall, Sales and Marketing Director of Bromford Homes, following the
publication of new housing cost research from the Chartered
Institute of Housing (CIH).
Their analysis − part of a CIH campaign called Uncovering
the true cost of housing − reveals that the cost of renting a
home has jumped by almost a third in the last decade and the cost
of buying a home on the open market has soared by more than twice
Bev backs the CIH call for more investment in new home building.
"The CIH is absolutely right when it says that owning − or
even renting − a decent home is now a pipe dream for many
people on ordinary incomes," she says.
"First-time buyers are especially hard-hit by the fact that
lenders now demand much bigger deposits − tens of
thousands − than they did before the credit crunch and many of
them feel locked out of home ownership as a result.
"It's a very real problem and building more new homes will
surely help − but the good news for first-time buyers and
other people who can't afford to buy on the open market is already
here in the shape of shared ownership.
"Instead of buying outright, you buy between 25% and 75% of a
new home and pay low rent on the remaining share. Because you're
only buying a share of the home, deposits are very much
lower − and the monthly costs are proven to be cheaper than
renting from a private landlord or when buying on the open
"It's a win-win way of making your home ownership dream come
true and we've got hundreds of happy part buy-part rent customers
across central England to prove it."
Bev, pictured above, highlights recently-published figures from
another housing lobby group, the National Housing Federation (NHF)
prove shared ownership is cheaper on a monthly basis than private
renting or buying on the open market.
NHF research revealed, for instance, that the average first-time
buyer deposit in the South West − just one of the regions
where Bromford Homes have developments − is now an
eye-watering £32,209 while the average shared ownership deposit is
less than half that at £13,065. And although the average first-time
buyer on the open market would need a gross income of £36,811 to
afford a mortgage, the average shared ownership buyer's income is
"Figures like that really matter in an area like, say,
Cirencester − Capital of the Cotswolds − where property
prices are generally fairly high and average salaries are fairly
low," says Bev.
"That's why the NHF also compared total monthly housing costs
and confirmed that shared ownership is significantly cheaper than
buying outright or renting privately. Here at Bromford Homes, we
also crunched the numbers to produce some typical total monthly
housing costs using our successful Fortuna shared ownership
development in Cirencester as an example and following a similar
formula to the NHF.
"The figures confirmed that shared ownership is a truly
affordable alternative to private renting and buying on the open
market − and this is surely reflected in the fact that shared
ownership sales there are now close to hitting the 80
The housing cost comparisons − and an explanation of how
the figures were worked out − can be found in Bev's April 11 blog and the CIH story
can be found at www.cih.org/truecostofhousing
03 May 2013