In Connells Group’s latest Shared Ownership Factsheets for Q3, it found that shared ownership could resolve some affordability challenges, as the average shared ownership mortgage payment was lower.
It found that typical payments were 36% less, with the monthly payment for a 25% share at £691, compared to the traditional average mortgage payment of £1,080.
The report showed that shared ownership was most affordable in the North East, which had five of the most accessible local authorities and the average shared ownership mortgage was no more than 18% of a shared owner’s salary.
The five least affordable were all in London, where the average payment was as much as 74% of a shared owner’s salary.
Roy Hind, affordable housing director at Connells Group, said: “Our data shows the demand to step onto the property ladder is clearly there, but as we well know, affordability has become a major blocker for first-time buyers wanting to purchase their first home.
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“That’s why shared ownership is a vital solution for aspiring homeowners in today’s market, and one [that] needs to be prioritised across the housing sector if we really want to help buyers overcome cost barriers and access homeownership. “
| Most affordable | Least affordable |
| Hartlepool – 16% | Kensington and Chelsea – 74% |
| Darlington – 17% | Westminster – 56% |
| County Durham – 17% | Wandsworth – 54% |
| Redcar and Cleveland – 18% | Camden – 52% |
| Northumberland – 18% | Hammersmith and Fulham – 51% |
Hind added: “While this data is really encouraging, the supply of new homes remains a significant challenge, with recent National House Building Council (NHBC) data showing new home starts are 17% below the 10-year average. Shared ownership is a vital solution to the affordability gap, and therefore, to truly unlock homeownership for more people, we need to explore innovative ways to boost housing supply and ensure these much-needed options remain available.”
