Major expansion to shared ownership
Among the measures expected to be set out by the Prime Minister in a speech today will be plans to re-invent the Shared Ownership Scheme. David Cameron is expected to open the door to an extra 175,000 aspiring home owners through an expansion of this scheme which allows people to part buy, part rent properties with the potential to increase ownership over time.
In a major expansion to this scheme the Government will be putting an end to restrictions that stop people using the scheme more than once. This means that those already in a shared ownership property will be able to move to another, allowing them to use the capital they have gained to move to a bigger property, as their families grow or circumstances change.
The Government is also expected to do away with old fashioned rules that dictate that only those in certain professions such as key workers or those that live in certain areas can own a shared ownership property. Instead, from April 2016 anyone earning below £80,000 in England and £90,000 in London will be able to buy a stake in a property.
Speaking today (7/12/15) the PM is expected to say:
“For years, we’ve had Shared Ownership, where you part-buy, part-rent a property. So many people are attracted to this idea, especially those who thought they’d never have a chance of owning a home. But, because it’s been heavily restricted, many of those people have missed out. We’ve had local councils dictating who is eligible, based on everything from salary to profession to where the buyer comes from. From April next year, that will make 175,000 more people eligible for home ownership. It means some people will be able to buy a house, for example, in Yorkshire, with a deposit of just £1,400. It will be opened up to people of any occupation, the only restriction being that you have to earn under £80,000, and £90,000 in London. Yet again, a Government that delivers, building a nation of home owners.”
Commenting from the BSA, Paul Broadhead said:
"If Shared Ownership is to grow and fulfil its potential it is time to recognise it as a specific tenure in its own right, alongside buying and renting. People often self select against it believing it is not for them and is appropriate or available for key workers only. Government's clear recognition of it as a way for the many rather than the few to get decent affordable housing may start to take it more mainstream. The sheer need is highlighted by the comparison between the new maximum income threshold of £80,000 and the average UK income of £27,600. However, for this form of tenure to really take off more work is needed to beat the main inhibitor, the lack of a secondary sales market."
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