A mortgage lender is attempting raise awareness of shared ownership after a survey revealed more people would consider buying a home this way once they understood how it worked.
The research discovered young people in the 18 to 24 age group, who were the most likely to use the scheme, were the least aware of its existence and what it meant.
And while knowledge around the scheme, which allows people to buy a proportion of a property and rent the rest, increased with age many of those in the target age group thought it worked in a different way entirely.
According to the YouGov poll, commissioned by Leeds Building Society, more than a quarter of 18 to 24-year-olds thought shared ownership meant buying a property with family, friends or a partner.
Once they had been made aware of the correct definition, however, many said they would be likely to use the initiative in the future – the highest of any of the age groups surveyed.
But there was still concern only 40% of the young people questioned were aware of the scheme and, amongst those who knew it existed, 20% had no understanding.
Benefits of the scheme
Shared ownership has been available to help people onto the property ladder since the 1970s.
Jaedon Green, direct of product and distribution at Leeds Building Society, said: “It’s a proven formula that helps people secure a home, even where a traditional mortgage is not affordable, and its longevity is a testament to its success.”
Another benefit to the scheme is that it can be combined with a Lifetime ISA to maximise the deposit. It also reduces the need for a large deposit, which makes it a popular choice for first-time buyers.
However, Green thinks awareness needs raising about these benefits and is concerned shared ownership continues to be misunderstood and underused by many of the people it is designed to help.
He added: “The fact that almost a quarter of those aged 24 or under would be likely to use shared ownership once they found out how it worked shows the importance of increasing awareness and educating those who would benefit most from shared ownership.
“At Leeds Building Society we’ve been supporting shared ownership from more than 30 years and are committed, through our broker partners, to helping those less well served by the wider mortgage market.”
