Leeds Building Society data has indicated that first-time buyers outside the traditional hotspot of London are increasingly using shared ownership as a way to get on the property ladder.
Areas of the UK experiencing growth in the tenure over the last three years include the South East, where the number of Society borrowers rose from 23% in 2019 to 28% in 2021, the East Midlands (8% of borrowers in 2019 to 10% in 2021) and the West Midlands (7% of borrowers to 9%).
Meanwhile, the proportion of Leeds Building Society’s shared ownership borrowers buying in Greater London has remained steady at 13% over the last three years. However, some areas like the North West (12% of borrowers to 8%) and Yorkshire (6% of borrowers to 5%) saw a fall.
An average of three out of five of all shared ownership buyers over the last three years bought homes in UK regions outside London and the South East, with areas including the South West (14% in 2019, 10% in 2020 and 15% in 2021) proving popular.
Martese Carton (pictured), director of mortgage distribution at Leeds Building Society, said: “Shared ownership offers first time buyers, in particular, an opportunity to step onto the property ladder, as it’s a way to bring down the size of the deposit they will need,” says , which is a leading shared ownership lender.
“London has traditionally been associated with shared ownership due to its high property prices, but it’s interesting to see homebuyers in other regions taking advantage of the scheme and demonstrates how it has the potential to help us bring home ownership within reach of more people in areas across the UK.
“With the gap between house prices and incomes predicted to continue growing, affordable housing schemes like shared ownership, which have been supporting buyers for over 40 years, offer a way onto the property ladder in areas like the South East where prices tend to be higher. Borrowers also appear to be using the tenure to buy outside larger city centres.
“We’ll be continuing to monitor these regional trends closely because we’re always looking for ways to widen access to home ownership and ensure our products and lending criteria are meeting borrowers’ needs.”
