Research showed 72% of respondents would not consider buying a home through a shared equity or ownership scheme, with 19% saying they thought it would be too expensive to pay both a mortgage and monthly rent.

A further 26% said they do not want to rely on someone else to help them buy a home.

Of those who said they would consider such schemes, 69% said it would make buying a home more affordable for them. However, 66% said they do not know the difference between shared equity and shared ownership

Location was a key factor for buyers, with four out of ten people who would consider an affordable housing scheme saying it would allow them to live in an area they couldn’t normally afford.

Yet, 15% of people not interested in the schemes said that the area and type of property available through the schemes put them off buying.

Sponsored

Are your clients ready for the first Making Tax Digital reporting deadline?

Sponsored by BM Solutions

Stephen Noakes, commercial director for mortgages at Halifax, said: “For those who think they are priced out of the market we would encourage them to consider an affordable housing scheme. Once a portion of a home is purchased, most schemes will allow the owner to slowly increase the amount of the home they own, as and when they can afford it, providing valuable flexibility.”

He encouraged buyers to talk to their local housing authority or developer and highlighted the fact that buyers can usually qualify for a mainstream mortgage, while typical total monthly costs of shared ownership may not be as high as people believed.