David Cameron is to announce plans to ease restrictions on shared ownership, giving 175,000 more aspiring homeowners the opportunity to get on the property ladder.
In a keynote speech outlining how the Conservative Party is delivering on its manifesto commitments, the Prime Minister will say rules preventing people using the scheme more than once will be abolished.
This will give those already in a shared ownership property the opportunity to move to another, allowing them to use their capital they have gained to move to a home as their families grow or circumstances change.
Shared ownership allows people to part buy and part rent properties, increasing their ownership over time.
The government will also be changing rules that dictate that only those in certain professions such as key workers or those that live in certain areas could own a shared ownership home.
From April 2016, the rules for shared ownership will be relaxed, giving anyone earning below £80,000 in England and £90,000 in London the opportunity to buy a stake in a property.
Speaking today, the Prime Minister is expected to say: “So many people are attracted to this idea, especially those who thought they’d never have a chance of owning a home.
“But, because it’s been heavily restricted, many of those people have missed out. We’ve had local councils dictating who is eligible, based on everything from salary to profession to where the buyer comes from.
“From April next year, that will make 175,000 more people eligible for home ownership. It means some people will be able to buy a house, for example, in Yorkshire, with a deposit of just £1,400. It will be opened up to people of any occupation, the only restriction being that you have to earn under £80,000, and £90,000 in London.”
Cameron will also announce an £8 million fund for councils to help them get “shovels in the ground”, preparing land that’s lying unused for the first wave of starter homes.
Mark Hayward, managing director of the National Association of Estate Agents, welcomed the news.
He said: “However, as with all housing promises, they can’t come quick, or big enough. There is still a huge issue with supply and available land upon which to build, not to mention the physical bricks, mortar and labour to do so. The house building industry is desperately short of human resource and if we are to get Britain building the number of new houses required, we need to address this problem to create actual homes and not aspirational targets.”
