Lack of knowledge about Shared Ownership appears to be one of the biggest barriers to young people using the scheme to get onto the property ladder, a survey has revealed.
Despite the fact 40% of first-time buyers were relying on financial support from family or friends to buy a property – even with a mortgage – only 6% had taken advantage of the scheme, according to TotallyMoney.
It has published the results of its survey to coincide with Shared Ownership Week which aims to raise awareness of the scheme that enables people to purchase a proportion of a property and rent the rest.
Fears
The survey, which aimed to learn more about the British public’s understanding of the scheme, revealed 80% of first-time buyers did not understand what ‘leasehold’ meant, despite their properties being owned under these terms.
However, even with the knowledge of what shared ownership meant, 38% of first-time buyers would still not consider buying through the scheme, TotallyMoney revealed.
Many were concerned about hidden fees and others were concerned about the fact they would not own the entire property.
Guide
Now TotallyMoney has produced a guide and infographic to help would-be first-time buyers understand more about the scheme – covering information on what it truly costs and how you can go from owning a share of a property to being a 100% owner via a process called ‘staircasing’.
A spokesperson from TotallyMoney 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 that they too can take advantage of it.”
