Shared ownership is now seen as one of the key ways to get onto the housing ladder, a report launched by CIH and Orbit reveals.
Shared Ownership 2.1, published by the Chartered Institute of Housing and Orbit, highlights the progress of shared ownership, which offers potential buyers the chance to purchase part of their home and then pay rent on the remaining share.
The report shows the tenure is affordable across the vast majority of the UK, that it is significantly over-subscribed and that the sector has capacity to build many more homes.
It also reveals shared ownership is now one of the best known ways of getting onto the housing ladder, with some 34% of the 2,200 adults polled by Ipsos MORI saying they knew about shared ownership, compared to 32% who knew about right to buy and 28% who knew about the Help to Buy equity loan.
The latest report comes two years after CIH and Orbit’s initial research into shared ownership, which urged the government to invest in building more homes for the tenure. Since then £4.1 billion of funding has been earmarked to build 135,000 new shared ownership homes and the eligibility criteria have been relaxed.
Gavin Smart, deputy chief executive of the Chartered Institute of Housing, said, “What this report shows is that shared ownership is now a popular and affordable route for many people in the UK to get a home.
“As house prices continue to rise, shared ownership is an option for the growing group of people for whom home ownership is increasingly out of reach, but who don’t have the level of need to qualify for social housing.
“It is pleasing to see more government funding being diverted towards shared ownership as this report makes it clear we need many more homes to cater for growing demand.”
Boris Worrall, executive director of futures at Orbit, said, “This research shows that shared ownership is gaining real momentum as a popular and well-known route into homeownership for thousands of people who would otherwise be priced out of the market.
“Government support and the sector’s ambition, alongside better marketing and management, indicate an even brighter future for this affordable and aspirational product.”
Other key findings from the report include:
- Some 102,848 shared ownership homes have been built since 2001, with housing associations now managing over 54,000;
- The average age of a shared owner is 33 and their average income is £33,558;
- 85,000 applications were made for the 8,000 shared ownership homes available last year;
- Only 18% of the people surveyed hadn’t heard of shared ownership.