Half of first-time buyers aren’t aware of the benefits of shared ownership, a type of housing that involves owning part of a home via a mortgage and part renting.
The research undertaken by house builder the Aster Group, also found that 49% of retirees and 43% of divorcees are unaware of the benefits of shared ownership.
With shared ownership you usually start by owning 25% of the property and have the option of building up the amount you own over time – known as staircasing.
The YouGov survey of over 2,000 British adults lays bare the public’s lack of understanding of shared ownership. It found that 24% of first-time buyers believe that shared ownership is for existing social housing tenants only, which is not the case.
Over half (53%) don’t know that banks and building societies offer mortgages for shared ownership and a quarter (24%) think that the maximum household income threshold to qualify is £30,000 or lower.
Only 2% of first-time buyers know that the maximum household income threshold for shared ownership is £80,000, outside of London, which means the majority of the UK population are eligible.
Nine in ten first-time buyers (87%) think houses are too expensive for those trying to buy their first home. Over half (51%) think the government should be doing more to raise understanding of the benefits of shared ownership as a method of getting on the ladder quicker.
A separate YouGov poll of 2,043 adults showed that 18- to 24-year-olds (12%) are most likely to believe that shared ownership means sharing a home with another person.
Amy Nettleton, assistant development director – sales and marketing at Aster Group, said: “At a time when so many people are priced out of owning their own home and are stuck in the increasingly expensive private rental market, bringing more choice to the market is critical.
“That choice should be considered at the same time as more traditional routes as for many it could be a more suitable, more affordable and more secure option. It is more secure than renting as it provides a home for life but is not as restrictive as owning outright – it gives people the flexibility to own as much of a property as they can afford.
“Our research shows that many currently aren’t aware of shared ownership’s benefits and how it’s designed to help people. The £80,000 income threshold is almost three times the average UK salary of £27,600. We think it could allow more young professionals to get on the housing ladder and we want the government to do more to market it as a mainstream solution.”
Aster Group is a housing developer and landlord. The research forms part of its report, Another way: How shared ownership can improve the UK housing market, which features insights from a variety of housing experts.
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