Shared ownership isn’t for every broker – and that’s the point – Pierson

Some brokers excel at driving deals to a developer’s deadline; others enjoy navigating complex cases for high-net-worth (HNW) clients, or challenging lender decisions under pressure.

All are valuable skills, and a mix is needed across any brokerage. But to be the right fit for shared ownership, you need patience, empathy and the ability to build trust with clients who can feel overwhelmed.

We’ve recruited a number of advisers recently, including for our shared ownership team, and we’re on the hunt for more brokers as the business continues to grow.

The flood of applications from talented professionals is heartening. Shared ownership has grown in popularity among borrowers since Help to Buy ended, particularly in London and the South East. Government figures show a 24% increase in households living in shared ownership to over 250,000 in the last six years.

As a result, we’ve seen growing interest from brokers wanting to learn more about the scheme and add another string to their bow.

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But not everyone is the right fit for affordable housing broking.

Shared ownership can be a solution for some

Brokers supporting shared ownership applicants are often dealing with borrowers who are less familiar with the home buying process, may be less financially aware, and sometimes more apprehensive about speaking to a financial adviser. They may worry their questions sound naïve.

Others may hold back key information because they feel embarrassed about their credit history or past circumstances. Sometimes, life has simply changed. At a recent open day, we met a woman with a good job who had been through a divorce and no longer knew where she stood financially. Her confidence had taken a hit and she wasn’t sure homeownership was still within reach.

This is where shared ownership advice comes into its own. Brokers must build trust, show patience and demonstrate empathy, drawing out information clients may at times feel uncomfortable sharing and guiding them through what can feel like a daunting process.

They must do this while clearly explaining fees, being upfront about what housing associations will and won’t cover, and not sugarcoating the responsibilities set out in the lease.

It is a complex transaction, as the National Audit Office’s (NAO’s) recent investigation highlighted. Borrowers must navigate not only the nuances of leasehold but also the process of staircasing.

The costs involved in staircasing, according to the NAO, can range from £800 to £2,568, covering admin, legal, valuation and mortgage fees. This can materially affect how often someone can afford to increase their share. Combined with rising service charges, the NAO noted that some customers risk ‘getting caught out’. It’s easy for clients to miss important information simply because they are too anxious to take it in or have information overload.

As part of the advice process, it’s imperative that advisers explore their clients’ long-term plans. Do they want to increase their share over time? Can they afford a significant jump – for example, from 25% to 50% or 75% – or are smaller, incremental increases more realistic? And do they fully understand the costs involved?

Shared ownership advice may take more time, but the rewards can be significant.

Brokers who start the journey with a family that doesn’t believe they can afford to buy a house get to watch their confidence grow and, ultimately, see them become homeowners.

Job satisfaction like that is hard to beat.