11 August 2021
Dudley Building Society, the specialist lender, believes that shared ownership needs to be given fresh consideration by the intermediary community as frustrated first time buyers continue to see house prices outpace income growth.
Enhancements announced by the Government to shared ownership rules which came into force in April make this method of home ownership far more attractive, but probably due to the pandemic, the positive implications do not seem to have cut through.
Changes include:-
- Buyers can now purchase an initial share as low as 10 per cent, as opposed to the previous minimum of 25 per cent, making shared ownership entry easier for those with limited deposits
- They can now staircase (purchase more equity in steps) in increments of 5 per cent, lower than the previous 10 per cent threshold
- There is also a new gradual staircasing option for those paying in cash, which allows buyers to staircase by just 1 per cent each year, with no need to pay for a formal valuation
Read more here: https://www.cherryplc.co.uk/industry/pressreleases/details/15995
