When Boris Johnson took over as Prime Minister, he pledged to address the housing market and “help a new generation to own their own home.”
As part of that pledge, Housing Secretary, Robert Jenrick, has announced that changes are to come into effect to the Shared Ownership scheme – with the aim of helping more buyers get on the property ladder.
The government has revealed that those with a shared ownership property will now be able to increase the share they own, a process known as staircasing, in smaller portions than they previously could.
People with shared ownership properties increase the amount they own in order to decrease what they pay in rent.
Under the new plans, owners would be able to increase their share in 1% chunks – instead of the previous 10% minimum.
With the maximum shared ownership property costing £450,000, this change could save some people up to £45,000 each time.
Speaking to Sky News the Housing Minster said:
“Building the houses this country needs is a central priority of this government.
“We know that most people still want to own their own home, but for many the dream seems a remote one.
“My mission is to increase the number of homes that are being delivered and to get more young people and families onto the housing ladder, particularly those on lower incomes.
“That’s why I am announcing radical changes to Shared Ownership so we can make it simpler and easier for tens of thousands trying to buy own their own home.”
What is Shared Ownership?
The Shared Ownership scheme was created to give people the opportunity to purchase a share in a property while paying subsidised rent on the rest.
You can purchase a minimum of 25% and a maximum of 75% – though there are some restrictions in place as to who is eligible for the scheme.
For more details on the scheme and to see if it’s an option for you, check out my Guide to Shared Ownership here.
What do you think of these changes?
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