Of those who have bought their first home in the past five years, 17% have a shared ownership property
Half of FTBs would consider or have considered using shared ownership as a way of getting on the property ladder, according to new research from The Mortgage Lender (TML).
While TML’s research found that 65% of first-time buyers were not sure what shared ownership means, once it was made clear half said they would consider or are already considering this as an option to buy a property.
Of those who have bought their first home in the past five years, 17% have a shared ownership property.
Meanwhile, 19% of those yet to buy have considered utilising shared ownership. Of this just more than 12% say they are likely to buy using the scheme.
Looking at the reasons why first-time buyers have considered using shared ownership, 26% said it was because it lets them slowly build up to ownership of the property when it suits them while a further 26% said they would not have been able to afford the property without the scheme.
A quarter said it meant they could purchase a property much quicker than first thought, while 24% said their monthly repayments worked out much cheaper than if they’d got a full mortgage or rented.
For 20% of respondents the scheme means they are able to afford to live where they want to live, and this is particularly the case in places such as London (25%) where the average property price is £518,000.
A further 19% said they would not have been able to get onto the property ladder at all without the scheme.
TML head of sales Chris Kirby says: Affordability continues to be one of the biggest hurdles for prospective buyers when it comes to getting onto the property ladder.
He added: As a result, it can mean many seek help elsewhere to raise the funds for buying a property, or otherwise make certain sacrifices, be it location or property type, to get on the ladder.