FTB shared ownership borrowers looking beyond new build

Published on

Greater numbers of first time buyers using shared ownership are buying existing properties rather than relying on new build, and are also securing larger shares in their homes, according to new data from Leeds Building Society.

In 2019, 16% of all buyers taking a shared ownership product with the Society bought an existing property, by 2020 that had risen to 25%. The Society remained in shared ownership lending throughout the pandemic and in the first six months of this year the data shows a very similar pattern emerging to that seen in 2020, with 24% in Q1 and 25% in Q2 buying homes that are not new build.

The percentage purchasing a share of 50% or more has risen from 24% in 2019 to 37% in the first six months of 2021, according to the figures.

Martese Carton, head of intermediary distribution at Leeds Building Society, said: “Typically shared ownership is popular with first time buyers because they require a smaller deposit to purchase a share of a home.

“Saving for a deposit is consistently stated as one of the biggest hurdles first time buyers face when trying to secure their dream home.

“We believe our data findings highlight a lack of supply of shared ownership properties. Affordable housing schemes like shared ownership have the potential to help many more first time buyers less well served by the wider market.

“This data also shows the scheme is providing an important stepping stone in the housing market, with existing shared ownership properties available because previous buyers have been able to move on into the mainstream housing market.

“Affordable housing schemes like shared ownership have the potential to help many more aspiring homeowners get a foot on the property ladder.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Target Group launches staff AI programme for regulated finance

Target Group has launched an AI Champion programme to encourage the responsible use of...

Employment history rises up brokers’ mortgage search agenda

Employment history became a more pressing concern for mortgage brokers in July as changing...

Half of homes taking longer to sell as regional divide widens

Homes in almost half of Great Britain’s local authority areas are taking longer to...

The uncomfortable truth about the later life lending market

The headlines around the latest Equity Release Council figures released this month all suggested...

Revived Help to Buy would inflate prices: Lamdin

Restoring Help to Buy would strengthen developers’ sales without solving the underlying affordability crisis...

Latest publication

Other news

Target Group launches staff AI programme for regulated finance

Target Group has launched an AI Champion programme to encourage the responsible use of...

Employment history rises up brokers’ mortgage search agenda

Employment history became a more pressing concern for mortgage brokers in July as changing...

Half of homes taking longer to sell as regional divide widens

Homes in almost half of Great Britain’s local authority areas are taking longer to...