Buyer verdict: shared ownership vs private renting
SHARED ownership buyers tell us they are better off and feel
more secure than they did when they were renting from private
Their verdicts are revealed in our series of case study interviews
and, according to Bromford Homes Head of Sales Alan Bradley, those
views reflect the wider feedback from 200-plus
customers who became shared ownership
buyers last year.
Shared ownership's part-buy, part-rent formula offers couples,
young families and other householders a truly affordable
alternative to private renting, he says − and more people on
lower working incomes could consider it as a way of getting onto
the property ladder.
His advice to first-time buyers follows publication of a new Chartered Institute of Housing (CIH) survey
that highlights the difficult plight for many private
renters − and the screening of a BBC Panorama documentary that showed how
easily tenants can be asked to leave their home at the end of a
typical six-month lease.
More than a quarter of those living in the private rented sector
told the CIH/Ipsos Mori that their home was too expensive −
compared to an average of 10% − and the survey showed private
renters are almost twice as likely to be unhappy with the state of
"These findings confirm what many of our customers tell us about
their negative experiences in the private rented sector as well as
what we've been shown in a series of independent cost comparisons,"
"There are three main issues − affordability, a sense of
security and the condition of people's homes. In each case, a new
shared ownership home like those at Oaklands in Rugby (pictured
above) is likely to offer a better alternative to private renting
for anyone who can afford a typical deposit of say
"Your new shared ownership home will be built to a high quality
and it will come with all mod cons including a fully-fitted kitchen
with hob and oven, fuel-efficient heating and double glazing −
all of which will help to keep down fuel bills.
"Shared ownership is also a more secure form of tenure than
private renting − and that's so important for young families
with school-age children and local jobs, people who don't want to
keep moving from home to home every six months or so at the whim of
a private landlord.
"Last but not least, shared ownership is affordable. Crucially,
for many first-time buyers, the deposits are low − just £3,364
if you buy 45% of a three-bed at somewhere like Colliers Green in north
Warwickshire − and your TOTAL monthly housing costs are likely
to be less than what you would pay for a similar home in the
private rented sector."
Alan cites recent independent cost comparisons published by HomeFocus
magazine, the CIH and the National Housing Federation −
all of which prove that shared ownership is typically cheaper. He
also points to buyers like Thomas Turner at St Mark's View,
Cheltenham, or Anna Malarska at Rugby's Oaklands − one of our most
popular shared ownership developments in 2013-14, with a second phase now almost
Thomas (pictured above) urges other young renters to give shared
ownership a go, saying: "It's ideal for first-time buyers like me …
overall, I know I pay less each month than friends in the
Cheltenham area who rent apartments and, unlike me, they are not
going to get anything back over time."
It's a similar story at Oaklands, where mum Anna (pictured
below) moved into a two-bed home with son William last July.
"Shared ownership is the perfect solution for first-time buyers
like me who can't afford a big deposit or a big mortgage but want
to get on the property ladder and invest in their future," she
says. "We love our home and we love the area... and it's cheaper
for me than the house I was renting before."
Alan's parting message to other householders who want to follow in
the footsteps of Anna and Thomas? "Call us now and find out how
shared ownership could unlock your property dream," he says.
"We are not saying it's the answer for everyone − and the
larger housing crisis will only be eased by building many more
homes where people want to live − but affordability has always
been the cornerstone of what we offer. As a potential buyer, you
will, of course, need some savings and be able to prove to
us − and your mortgage lender − that you can afford what
is almost certainly the biggest single financial commitment you
will ever make."
"We always work closely with all our customers to make sure that
they only buy what they can afford and the success of the process
can probably be best measured by what buyers like Anna and Thomas
have to say about their experience."
To find out more about shared ownership and
developments in YOUR area, call us on
0845 60 10 878 or register for
updates. You can also keep up to date by following us on Twitter and Facebook.
* Example. At Oaklands, £78,750 buys 45% of a three-bed with
a full market value of £175,000. Your minimum deposit would be
£3,938, assuming a 95% mortgage on the share you buy.
25 June 2014