11 Oct

Shared ownership to 'play vital role'

Shared ownership to 'play vital role'

Shared ownership deals offered by housing associations will prove an important temporary solution for first time buyers struggling with affordability, it has been claimed.

According to a spokesperson from the National Housing Federation, although the problem of lack of affordable housing will only be solved in the long term by building more homes, in the meantime shared ownership deals have "a vital role to play".

The chief advantages of the scheme are that they allow those taking them out to only take on as much debt as they feel comfortable with, he added.

"You can start off buying a share in your property, say 50 percent or 75 per cent, and actually increase your ownership state over time. You move up towards owning the place outright, but you do it at the pace that you're comfortable with and able to do.

"The problem is, that these schemes are in very short supply and they are very over subscribed and there are very long waiting lists for them. We need to see supply for affordable homes go up, we need to see investment."

News of the spokesperson's comments come as recent statistics from homeless charity Shelter's magazine Roof showed that mortgage repayments now account for 21 per cent of the average household's income - up from 11 per cent in 1996.



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