You are viewing 1 of your 1 free articles
Shared ownership overhaul unveiled in bid to help more on to housing ladder
Plans to overhaul shared ownership have been unveiled as part of a government bid to help more first-time buyers on to the housing ladder.
Under the proposal, which will go out to consultation, people will be able to buy an increased stake in their home in 1% chunks, instead of the current minimum of 10%.
The plan is part of a package of measures announced by new housing secretary Robert Jenrick today. It also includes reforming the planning system to boost the number of houses being built.
The Ministry of Housing, Communities and Local Government did not offer more detail on changes to the planning system. However, Mr Jenrick has reportedly ruled out building on the green belt.
READ MORE
Reports also suggest that ministers are looking at the idea of giving a 20% discount to first-time buyers on new homes in the areas where they grew up. The cost would be taken on by developers, The Times reported.
Last month prime minister Boris Johnson pledged to give “millions of young people the chance to own their own home”.
Mr Jenrick said today: “My mission is to increase the number of homes that are being delivered and to get more young people and families on to the housing ladder, particularly those on lower incomes.”
Through shared ownership, buyers are able to buy a proportion of a home for a minimum of 25% then pay a subsidised rent to a housing association.
Under the current system, buyers have to purchase an extra share in their homes in 10% chunks – a process known as ‘staircasing’. This can be up to £45,000 at a time.
Ministers are also aiming to make it easier for people using Help to Buy to get a 35-year mortgage. A loophole banning people from taking out a mortgage with a term of more than 25 years has been closed with “immediate effect”, the government said.
Labour dismissed the change to shared ownership as “meaningless”.
Shadow housing minister Sarah Jones said: “Tinkering with the details of shared ownership is meaningless when lack of investment from government means low-cost homes for ownership simply aren’t getting built.”
Earlier this year, Savills suggested that housing associations could be better off selling their shared ownership stock to private investors so that they can concentrate on other forms of affordable housing.
For full industry reaction to today’s announcement click here
