Shared-ownership schemes causing some concern

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by Kay Murchie

Shared-ownership schemes have been appealing to many homebuyers as rising house prices have meant that first-time buyers are struggling to get on to the property ladder.

According to the department for Communities and Local Government, first-time buyers are now paying an average of £167,314 for a property - unaffordable to many. Consequently, shared-ownership schemes have noted an increase in popularity.

The schemes allow purchasers to buy a share in a property owned by a housing association, paying rent on the remainder and steadily increasing their share. However, some schemes may not be all they seem.

Developer McDermott Homes said that shared ownership has not turned out to be the solution that everyone thought it would be. A number of contracts can be very limited and potential first-time buyers are starting to see that the scheme may not be the answer.

McDermott Homes has raised many concerns with the shared-ownership schemes, one being improvements to the property - permission has to be sought, the housing association is responsible for the structure of the building but repairs and decoration are the tenants responsibility.

Secondly, participants of the shared-ownership scheme must be key-workers and prove that they are not able to purchase a house by any other means.

Finally, McDermott Homes say the choice is limited, only a small number of properties are available and waiting lists are long.
McDermott Homes concluded that shared-ownership schemes can be attractive to many but agreements must be carefully considered before proceeding.