Public largely ignorant of shared ownership options

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The Halifax has claimed that many homebuyers are in the dark as to the opportunity that shared ownership and shared equity schemes offer.

72% of respondents said that they would not consider buying a house through a shared equity or ownership scheme, almost a fifth of whom believed that it would be too expensive to pay both a mortgage payment and rent monthly.

Many borrowers will also be able to access mainstream mortgage rates meaning that they don’t have to choose from a reduced range of products or pay a premium. Of those who said they would consider a shared equity or ownership home, 69% said it would make home buying more affordable for them.

Halifax says the location of a property is for most buyers a key driver behind the decision of whether that home is right for them. Whilst 68% don’t know about any affordable housing schemes in their area and 15% of those who were not interested in the schemes said that the area and type of property available via affordable housing schemes would put them off buying, 40% of those who would consider the schemes said that buying a shared ownership or equity home would enable them to live in an area they couldn’t normally afford. Halifax claims these buyers are challenging the common misconception that affordable housing schemes are located in undesirable areas and so are benefitting from buying in sought after new developments or in communities that already have a large portion of owner-occupiers. 44% said that it would allow them to get onto the property ladder.

However, Halifax claims that 31% of people “don’t want to find out more”” about how to get onto the property ladder with the help of an affordable housing scheme and 10% don’t know where to turn for help and advice.

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