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“Try shared ownership” as young struggle to buy

DON'T despair − shared ownership still offers affordable hope for the new generation of would-be homebuyers who, it is claimed, may have to stay living with their parents until their mid-30s.

That's the message of cautious hope from Bromford Homes Head of Sales Alan Bradley in response to new research that warns rising property prices and the chronic shortage of affordable homes are putting the dream of home ownership beyond the reach of millions.

The warning by housing charity Shelter comes with a forecast that many young adults now face a future of living in their childhood bedrooms until their 30s − and even then a growing number won't be able to buy a home of their own on the open market without a family inheritance or tapping into the Bank of Mum and Dad.

SO parents and daughter

"This report makes grim reading for ordinary young adults who, like most of us, look forward to owning a home of their own − although we certainly don't want to be alarmist about this very real problem," says Alan.

"Clearly, we as a nation need to build many more affordable homes in order to meet this need, and Bromford certainly supports that aim along with other providers and housing lobby groups such as the NHF and CIH.

"In the meantime, shared ownership plays a crucial role in helping many first-time buyers to get on the property ladder at a price they can afford. The deposits are significantly cheaper than those required for open market homes − typically around £3,000 to £4,000* − and the monthly costs are certainly cheaper on average than renting a similar home from a private landlord.

"That's why well over 200 buyers on lower incomes − people who can't afford open market prices − said yes to shared ownership with Bromford last year.

"Looking to the future, we certainly see no sign of let-up in demand from first-time buyers for this and, in the light of this latest report, would encourage people who might not have heard about shared ownership or think they don't qualify to get in touch and find out how the part-buy, part-rent formula could make their property dream comes true.

"There are still a lot of misconceptions about shared ownership. Some people think it is just for key workers. That's not true − although key workers are welcome, of course. Many people don't realise that you can have a household income of up to £60,000 a year and still qualify for shared ownership.

"At a time when property prices are rising − up by 10.9% over the last 12 months, according to the latest Nationwide price index − shared ownership really does offer an affordable alternative to private renting or living with family or friends for many years while you try to save a big deposit.

Anna keys 960x400

"What's more, you don't just have to take my word for it. Just listen to the stories of shared ownership customers like Matt and Clare who moved into their first home at Larks Rise, Coventry, last year and have now started a family. Or 28-year-old mum Anna who made her home ownership dream come true when she moved into a new home at Oaklands, Rugby, with her son last July.

"Anna says it's cheaper than private renting, wants to buy a bigger share when she can afford it − like many of our buyers − and has no hesitation in recommending that other first-time buyers give it a try."

* With shared ownership, you buy between between 25% and 75% of your new Bromford home − the amount depends on what you can afford − and pay low rent on the remaining share. In the case of Oaklands, Rugby, £78,750 buys a typical 45% share of a three-bed Goldcrest with a full market value of £175,000. Your minimum deposit would be £3,938, assuming a 95% mortgage on the share you buy.

To find out more about shared ownership and local developments, call 0845 60 10 878 or register for updates. You can also keep in touch on Twitter or Facebook.
Follow the links to find out more about the Shelter findings and latest Nationwide house price index.

03 May 2014