Kevin Sims tells us about the benefits of Shared Ownership and how SO Resi pioneered the staircase scheme that was then rolled out nationally by the government...
Kevin, how long have you been in your current role of director of sales and marketing at SO Resi?
I have over 35 years’ experience in the property and mortgage industry, in fields such as new homes development, estate agency and Shared Ownership. I joined SO Resi in the summer of 2019 as group head of sales, responsible for the UK-wide new build team. In December 2022, I was appointed to my role now as director of sales and marketing obtaining the responsibilities of resales, loan redemption, staircasing and partnerships.
Can you give us a brief overview of the benefits of Shared Ownership?
There are so many benefits to Shared Ownership, especially as the current climate is making it trickier for buyers. Deposits for Shared Ownership properties start at the 5% mark, this means buyers can get onto the property ladder a lot more quickly. For example, at our SO Resi Welwyn Garden City development, a deposit for a one-bedroom apartment can start from just £3,500. Another benefit is of course that buyers contribute towards a mortgage each month, meaning they are accruing equity on their home. Lastly, there is the opportunity for people to staircase, which means buying additional shares in their home. We were the first organisation to offer our buyers the opportunity to purchase an additional 1% share a year, at a pre-arranged price, for up to 15 years. The scheme was so successful that the government has now rolled it out nationally.
Your website features a section on ‘myth busting’ Shared Ownership, what would you say are the most common misconceptions about the scheme?
There are two main myths that always leap out at me, the first is that Shared Ownership is only for first-time buyers. The majority of people that use the scheme are first-time buyers, however, it is open to anyone that is struggling to afford a new home, including those who have owned a home previously but do not anymore, those forming a new household, or existing shared owners who want to move again – it is a scheme designed to help everyone. The second myth is that buyers can never actually own the property. Every purchaser can buy the balance to fully own their home, and that’s a vital part of the Shared Ownership journey. Buyers are also free to paint and decorate their homes however they choose, unlike renting.
SO Resi champions Shared Ownership and aims to make the process ‘simple and straightforward’ for buyers, how do you do this?
SO Resi takes pride in shaping the market, having pioneered for shared ownership since the 1970’s. Our expertise and experience, combined with the diverse strengths of our partners means we are now helping even more people achieve homeownership, creating more communities and much needed housing. Customer service is the most important part of the journey, and our dedicated team of specialists are always on hand to help people through each step of the buying process, having heavily invested in technology to continually enhance the digital journey to make it as simple as possible for our buyers. We also prioritise education and making sure that our past, present, and future buyers understand the process of shared ownership fully. We understand that buying a home is an incredibly daunting process, so we have a range of guides and explainer videos on our website to help as many people as possible. We pioneered SO Resi Plus, a scheme which allows buyers to staircase by purchasing an additional one per cent share each year, which can be purchased at the touch of a button with no solicitors needed, making the ultimate goal of home ownership that little bit more achievable.
What are the upfront and ongoing costs associated with buying a home under Shared Ownership?
When buyers find a property they like and want to buy, there is a one-off reservation fee to secure the property, along with the usual solicitors’ costs and mortgage broker fees which are all paid prior to moving in. Once moved in, there are three main costs associated with owning a Shared Ownership home. The first is the mortgage payments, which are paid on the share you have purchased. There is then the rent, which is paid on the remaining share of the property, and finally, a service charge which covers the cost of maintaining the surrounding areas of your home such as gardens and hallways.
You’re currently marketing schemes in various locations, tell us a bit more about them.
We specialise in shared ownership homes predominately in London and the Home Counties, and further afield such as the West Midlands. Some of our developments include:
SO Resi Welwyn Garden City, Hertfordshire: Located on the site of the former Shredded Wheat Factory, this development consists of one-, two- and three-bedroom apartments. The development has proven popular with young professionals, who are just a 29-minute train ride away from central London.
SO Resi Hope Green, Stanford Le Hope, Essex: This site is one of the first UK operationally zero carbon developments, fully available with shared ownership, with four of the properties entirely bill free. It comprises 153 new homes – 138 two-, three-, and four-bedroom houses and 15 two-bedroom apartments. All homes come with air source heat pumps, solar panels, high insulation, and low-cost LED lighting throughout.
SO Resi Bracknell, Berkshire: Almost a billion pounds has been invested in the Bracknell Forest regeneration scheme, which means our one- and two-bedroom apartments are located nearby to to array of transport links and amenities.
How do you think Shared Ownership compares with other schemes available to help people get onto the property ladder?
We of course saw the ending of the Help to Buy: Equity Loan scheme at the end of last year. There is a fairly new scheme called Deposit Unlock which allows buyers to buy using just a 5% deposit on selected new build homes. However, 95% mortgages require a larger household income and ultimately higher monthly repayments, as opposed to shared ownership where a deposit is calculated on the share of the property you are buying, reducing the immediate upfront costs to homeownership. Shared Ownership is a well-established and trusted product and is hugely popular for buyers with smaller savings or on a lower income. I believe that the benefits of staircasing to home ownership, a low deposit and being more affordable than most rental agreements makes shared ownership the strongest affordable housing scheme.
Does it feel like a good time to buy a new home at the moment?
There is never a ‘right time’ to buy a new home unfortunately, but there are many added benefits to buying a new build which suit the current climate. This includes having better EPC ratings - so less spent on energy bills - a blank canvas so decorating costs are kept minimal, and the added bonus of new builds being chain free, meaning buyers move into our build-complete developments in a matter of months.
Do you focus on sustainability and using environmentally-friendly materials when building SO Resi houses?
As a result of modern building techniques, higher insulation, and smart features, all of our new builds are built with our buyers in mind to achieve lower energy bills.
We of course have our flagship SO Resi Hope Green development, which we are the selling agent for, which is set to become one of the first operationally zero carbon affordable homes schemes, with four of the Shared Ownership properties entirely bill free. Built by Ilke Homes and in partnership with Octopus and Gresham House, all homes come with high quality insulation, including airtight windows and doors, high-performing building fabric, low-cost LED lighting, solar panels and battery storage technology fully installed.
And finally, what’s in the pipeline for SO Resi over the next 12 months?
It’s an exciting year here at SO Resi. Not only are we working on a number of exciting, Shared Ownership schemes, we are celebrating two years of our SO Resi Partnerships brand. We are also launching several developments with the Rent to Buy and London Living Rent schemes – a first for us.