A New Shared Ownership Model
In the latest UK property news, Housing Secretary Robert Jenrick MP has announced a new Shared Ownership model. This new Shared Ownership model is designed to help more people put their foot on the property ladder as part of new measures to boost the number of affordable housing in the UK.
What is Shared Ownership?
The previous Shared Ownership model required the buyer to buy a share in their house at a minimum of 25% and a maximum of 75%, and then pay the remaining as rent. To be eligible for this, your household must earn £80,000 a year or less (or £90,000 if you live in London). You are also eligible if any of the following applies to you;
- You’re an existing shared owner
- A first-time buyer
- You used to own a home but cannot afford to buy a new one
However, the new Shared Ownership model will see a reduction in the minimal initial share that you can buy in a property from 25% to 10%. People will also have the opportunity to purchase additional shares in their home in 1% installments with heavily reduced fees. Additionally, a 10-year period has been introduced whereby the landlord will cover the cost of any repairs and maintenance for new shared owners.
The overall investment in affordable housing reaches £12.2 billion which was already confirmed in a government programme from 2016 to 2022, which also included £700 million on new homes.
A new £11.5 billion Affordable Homes Programme will be delivered in 2021 until 2026 that will provide up to 180,000 new homes across the country over these 5 years, dependent on economic condition.
Nick Walkley, Chief Executive of Homes England, said:
“We welcome the launch of the new Affordable Homes fund, which gives Homes England a unique opportunity to work on behalf of the government to accelerate the delivery of high-quality, affordable homes.
The fund will support improved productivity in construction and unlock new economic opportunities across the country. Despite the challenges of COVID-19, this long-term funding settlement gives our partners the confidence they need to invest in new homes and the communities they work for.”
More information can be found on the government website.
This new Shared Ownership model is a fantastic boost for the industry to allow people to buy a home. Our impressive Nightingale Quarter development is located in the thriving city of Derby and has a total of 800 new homes available in Spring 2021. Eight of these properties will have the option for Shared Ownership. Property options at Nightingale Quarter include luxury one- and two-bedroom apartments and two- and three-bedroom homes, all at affordable prices. Derby has proven itself to be a fast-growing city for all the right reasons. Such as…
- Holding the 2nd highest income per person outside of London
- A population of 254,000 people within the city centre
- 55,000 students within a top 20 university
- £4 billion has been invested in the city in the last two years, with £2 billion more in the pipeline
For more information on the Nightingale Quarter, please click here and contact us for any further information.
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