A lack of knowledge along with fears of hidden fees could be preventing first-time buyers accessing a useful tool for becoming a homeowner.
That’s according to TotallyMoney which has published a guide unravelling the mysteries of Shared Ownership in a bid to encourage more people to take advantages of the benefits of this route to homeownership.
In a survey of 1,000 members of the public to gauge their understanding of schemes available only 19% of property buyers in the last ten years said they had used a Government-backed initiative to secure their property.
Meanwhile, only 6% of first-time buyers have used the Government’s shared ownership scheme and only 28% of 18 to 24-year-olds knew what it was.
Shared ownership provides a way for people to get onto the property ladder by purchasing a share of a property and renting the remaining portion. In 2013 the then Chancellor of the Exchequer George Osborne presented it as a viable method for those who wanted to get their foot on the housing ladder.
Yet, even with this and other options available to first-time buyers, 40% admitted they needed financial support from family and friends to buy a house.
And more than a quarter of those surveyed said they were reluctant to use shared ownership because they were worried about hidden additional fees.
Making the best financial decision
TotallyMoney said with many people still unclear on what the schemes meant and how they could help them become homeowners, it questioned whether they were being used to their full potential.
A spokesperson said: “With entering the property ladder becoming increasingly difficult, and with this step being so important to many, it’s important to clear the smoke that exists around the schemes existing for first-time buyers today in order to help them make the best financial decision.
“Though many do not have a rounded understanding of what the Government Shared Ownership Scheme is, for those that do understand it can be a useful tool to become a homeowner.
“We have conducted this research and created this guide to open up understanding on Shared Ownership for those looking to buy so they can take full advantage of it.”
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