As property prices have gone sky-high, many in London and the South
East have had to find unusual ways to become property owners. Shared
ownership is one way to help those who have been priced out of the open
market.
Shared ownership enables people to buy a significant share (typically
between 30 and 50 per cent) in a home with the opportunity to purchase
some or all of the remainder as and when they can afford it. Along with
a monthly payment towards the share of the purchase, shared ownership
buyers also pay a subsidised rent to the owner of the remaining share
of the property, usually a housing association (also known as
‘registered social landlord’). The monthly costs are more affordable
with shared ownership than with buying outright – and the buyer is able
to enjoy the day-to-day benefits of owning immediately.
Housing associations offer shared ownership schemes on a variety of
property types, both newly built and previously owned. New home
builders routinely work alongside housing associations to provide
homes, some of which are made available as part ownership schemes.
This type of scheme benefits not only those it enables to buy property;
as people move from council tenancy on to the property ladder, local
authorities are better able to keep up with demand for council-owned
rented property by those who would not be able to afford even part
ownership. In addition, the services a community relies on in turn
relies on workers to deliver them. The lack of housing is a threat to
the well-being of everyone, whatever their own financial situation.
A particularly inventive type of shared ownership helps people build a
better future – literally. The self-build shared ownership scheme, as
offered by the Boleyn & Forest Housing Society, aims to help people
afford a home who otherwise would not have been able to – and to
encourage those who are prepared to meet their housing needs through
their own endeavours.
The scheme enables people to acquire an approximate 25 per cent share
of a property through their own labours known as ‘sweat equity’. They
may also need to obtain a mortgage or have sufficient savings to
acquire a further approximate 25 per cent share of the property. They
would pay a subsidised rent on the share of the property that they do
not actually acquire, as they would then be a shared-ownership home
owner.
The Boleyn & Forest Housing Society presently offer three
self-build schemes in London – in Beckton, Docklands and Bow.
Applicants must either be first-time buyers or must require alternative
accommodation but not be able to afford to move without the assistance
of shared ownership. Preference for these schemes will be given to
residents of the borough where the scheme is located, and those with
trade or DIY experience are also given priority.
Quick contacts
Housing Corporation
020 7292 4400 (London office)
020 8253 1400 (South East office)
Boleyn & Forest Housing Society Limited
020 8472 2233
Metropolitan Home Ownership
020 8920 4444
Acton Housing
020 8840 6262