Shared Ownership helps Londoner escape rental trap
With one-bedroom flats now costing an average of around £1,245pm, it is no surprise that London was recently confirmed as the second most expensive place in the world for renters.
For many professionals, like Eamonn Kenny, simply renting a flat in the capital is now out of reach, let alone being able to buy a place outright. At the age of 35 he was ready to move away from living in house-sharing accommodation, which he had done for around three years, but couldn’t see a way out.
“I felt trapped,” Eamonn, who works in commercial property, said. “I was in a situation where I couldn’t afford to buy a home outright and I couldn’t afford to rent a one-bedroom place in London.
“Although I had been aware of Shared Ownership for a little while, I had discounted it because of some of the misconceptions associated with it,” he said. But the more Eamonn looked into it, the more he realised it would be a good option if he wanted to get on the housing ladder without a large deposit.
His girlfriend had also bought a shared ownership flat and had successfully ‘staircased’ her way up to full ownership. He said: “Seeing what my girlfriend managed to achieve really inspired me and made me reassess the way I looked at shared ownership.”
At the start of the year he paid £140,000 for a 35% share of a one-bedroom flat at Riddell Court, a new development by Latimer in Hornsey.
Eamonn raised a deposit of £39,000 with the help of the government’s Help to Buy ISA the scheme whereby the government gives buyers £50 for every £200 they save. He said: “I found the Isa process very easy and would recommend it to anyone wanting help to get on the ladder.”
Now he is in his new home, he is very positive about shared ownership. “It feels great to get on the ladder, and feel like I’ve got a real stake in my own property. And it’s an added bonus that it’s cheaper than renting a one-bedroom flat would’ve been.”
And Eamonn has wasted no time putting his own stamp on the place. “I have made a few trips to IKEA and buying furniture to kit the place. It’s been really exciting and satisfying just being able to buy furniture, like a bed, knowing that it’s mine for years to come.”