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Rising number of shared ownership buyers moving away from new builds

  • 08/12/2021
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Rising number of shared ownership buyers moving away from new builds
More first time buyers using shared ownership are buying existing properties rather than relying on new build, and are also securing larger shares in those homes, according to research by Leeds BS.


People taking their first step onto the property ladder might once have dreamed of using shared ownership to secure a new build, increasing numbers are opting for shared ownership properties that have had previous owners. 

In 2019, 16 per cent of all buyers taking a shared ownership product with Leeds bought an existing property, by 2020 that had risen to 25 per cent. The Society remained in shared ownership lending throughout the pandemic and in the first six months of this year the data shows a very similar pattern emerging to that seen in 2020, with 24 per cent in Q1 and 25 per cent in Q2 buying homes that are not new build.

Martese Carton (pictured) head of intermediary distribution at Leeds Building Society said: “Typically shared ownership is popular with first time buyers because they require a smaller deposit to purchase a share of a home. Saving for a deposit is consistently stated as one of the biggest hurdles first time buyers face when trying to secure their dream home.

“We believe our data findings highlight a lack of supply of shared ownership properties. Affordable housing schemes like shared ownership have the potential to help many more first time buyers less well-served by the wider market.

“This data also shows the scheme is providing an important stepping stone in the housing market, with existing shared ownership properties available because previous buyers have been able to move on into the mainstream housing market.”

The percentage purchasing a share of 50 per cent or more has risen from 24 per cent in 2019 to 37 per cent in the first six months of 2021, according to the figures.

Shared ownership enables people to purchase an initial share of a property, reducing the size of the deposit needed. They pay rent to a landlord, usually a housing association, on the remaining share and can choose to buy further shares later if they wish.

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