Homebuilders, are you reaping the benefits of Shared Ownership?

How can shared ownership benefit the housebuilder?

The Help to Buy Equity Loan scheme is soon coming to an end, and having been a significant aid to first time buyers in getting themselves on the property ladder, it will be missed. Fortunately, there is another, under-utilised, perhaps even under-appreciated, option for first time buyers to take advantage of: shared ownership.

Shared ownership has been increasing over the last 5 years, with the 18,220 units completed in 2019-20 having risen to 20,363 in 2022-23. It has increasingly become important for the delivery of affordable housing, making up the vast majority of the homes for owner's occupation that is expected to be 50% of affordable homes delivered by 2028.

As of December 2021, there were 202,000 households in the sector in England, and whilst this is progress, it represents less than 1% of households. A tiny minority of households have been able to begin creating a long-term home without the massive financial outlay, this makes it 'out of reach' for many.

The major difference between shared ownership and help to buy, besides even more accessible financial thresholds, is that shared ownership is establishing a longer term commitment for buyers. Shared ownership schemes demand a longer process than simply buying a property and paying back loans, buyers are renting alongside paying their mortgage, doing so means they are committing to being in their home in the long term, in order to staircase their shares upwards.

Long term commitments can sound scary, but the reality is, this commitment is positive; the security of home ownership is based on commitment. The demand for homes is not going to abate anytime soon, but shared ownership allows people to commit to buying and renting a home with a future in mind. Commitment is good for developers too, because it sees houses become homes, people commit to live in new developments for the long term, transforming them into communities. Shared ownership allows developers to service a first time buyer market that is increasingly hard to reach, and pushes houses towards people that will make them into homes. With the rapidly changing financial and political world, it has become even more important to work collaboratively with a financial service you can trust. Mortgages First and RSC help keep customers and clients updated and reassured during these uncertain times.

The New Build Development Director of Mortgages First & RSC, Andrew Mannion explained how RSC and Mortgages First can help housebuilders benefit with the SO scheme on their development;

''RSC and Mortgages First are specialists in shared ownership financial products, as we work with a range of shared ownership mortgage providers, giving access to exclusive and competitive products. Housebuilders can rest assured we will guide their customers through a full assessment, working out which share size and mortgage they can obtain. We keep customers updated at every stage and dedicate them a specialist point of contact, offering face to face, digital or telephone appointments. We help collate all the documents required for the shared ownership and mortgage application and liaise with providers. We can qualify customers quickly, resulting in faster sales for the housebuilder.

Customers can start their mortgage journey by utilising our Mortgage Match facility to obtain affordability and credit decisions for shared ownership mortgages in just 60 seconds''.

For more information on how The SO Hub can benefit you and your development with shared ownership, get in touch.

The SO Hub 
0115 671 0397
or request a brochure - click here