FTBs consider shared ownership to get on the property ladder

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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.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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