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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 that amount.

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 market.

"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 Hall on HomeBuy

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 just £22,800.

"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 milestone."

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

03 May 2013