Rightsizing, for any purpose, is an option commonly considered by homeowners, and for those who are ready to make the move, shared ownership could be the answer that helps them find their perfect new home despite the current storm of economic pressures.
But what is rightsizing, and why might someone choose to move to a smaller property? The most common form of rightsizing is downsizing, whereby a family or individual moves to a home more suited to their current needs and can be done for a number of reasons.
For example, a relationship breakdown may leave an individual looking to find an affordable, perfectly sized new home, or a couple could be looking to resize due to children moving out. However, rightsizing can also include those looking to move to a bigger property, for example as their family expands.
Equally, the uncertainty of the property market and UK economy may prompt some to sell their home to reap the benefits of moving to a smaller property, as larger homes often bring larger burdens in terms of maintenance and high energy costs.
Whatever the reason, rightsizing is one way that people are regaining control of their circumstances and allowing themselves more freedom. However, with the current housing market, this may still feel out of reach.
For a number of potential buyers, shared ownership could provide the answer to their property dilemmas, as a modern method of buying a home that is designed to remove some of the market uncertainty and help buyers make the move that is right for them.
A larger capacity for shared ownership
With a smaller upfront deposit required for shared ownership, mortgage repayments are often much more affordable, allowing rightsizers more opportunity to find their perfect property.
In comparison to a first-time buyer, who may be likely to make a purchase of around 25 per cent, some rightsizers may find themselves with a more flexible budget, meaning a larger percentage of the property can be purchased.
This could also mean that they are in a position to purchase a larger home than originally anticipated, due to the lower deposit and mortgage that come with shared ownership, in comparison a traditional sale.
Another benefit of shared ownership is that, over time, additional shares can be bought, increasing the percentage of the property that is owned by the buyer, and decreasing the monthly rent to the housing developer.
Homeowners are already facing a number of challenges in 2023, however, finding the perfect new home shouldn’t be one of them. Whether it’s to make the most of new circumstances, or to create more time for freedom, shared ownership homes are helping buyers of all ages and situations find the property of their dreams, on their terms, this year and beyond.
