Will Shared Ownership Plug The Help To Buy Gap?

With the Help to Buy equity loan scheme coming to an end on March 31 2023 – and the deadline for reserving a home using the scheme already passed – affordable housing provider St Arthur Homes is predicting that potential homebuyers will find Shared Ownership a great alternative.

Shared Ownership properties mean that the purchaser buys a proportion of their new home and pays rent on the remainder. By using this way of purchasing, buyers can often get onto the property ladder earlier or buy a larger home than they previously thought possible.

Richard Cohen, CEO at St Arthur Homes, said: “The Help to Buy scheme has been a stalwart of the housing industry for many years now and has helped tens of thousands of people onto the housing ladder. Even when it ends next year though, the reality is that people will still want and need to buy new homes.

“We believe that we will see an upswing in people looking to Shared Ownership properties to fill the gap that Help to Buy leaves. There are even some significant benefits that Shared Ownership provides, compared to Help to Buy.

“First, it’s a common misconception that you need to be a first-time buyer to purchase a Shared Ownership property. Actually, as long as you don’t currently own a home, you could be eligible. Many of our buyers have already owned their own home before buying one with us.

“Second, the 20% Help to Buy equity loan does need to be repaid and is only interest free for five years. With Shared Ownership, you can purchase further shares in your house at a time when it is convenient for you, using a process known as ‘staircasing’. This allows you to build up the percentage that you own of your home, at your own pace and in your own time.

“Lastly, a buyer of a St Arthur Shared Ownership property generally only needs to put down a 5-10% deposit on the proportion of the house they are buying. This can work out much cheaper, depending on the percentage you are buying, than buying a home using Help to Buy.

“It is clear that there are still options for buyers looking for support as they buy their new home. Shared Ownership may be an option that many haven’t previously considered, but we’re convinced that over the next year many more people will see the benefits that come with this kind of property.”

Find out more starthurhomes.com.

Find out more about current part buy-part rent developments across the country.