Another Way to get on the Property Ladder

Another way to get on the property ladder

As deposits rise, more buyers are embracing the misunderstood shared ownership scheme.

My eldest son Richard is in his late twenties and is still renting, I’m not sure how he will ever afford to get onto the property ladder. If I had 50k in my bank I would give it to him but like most of us I don’t have that kind of cash kicking around, and with two teenage daughters both wanting to go to university I’m unlikely to have any spare cash to help him out in the near future.

To be fair to him he hasn’t asked for any help, but he and his long-term girlfriend mentioned recently that they were thinking of buying a house in the next couple of years. I know they don’t have any savings and most of their hard-earned cash goes on the rental of their flat and general living expenses. Acting as the interfering mother I thought I’d start looking around for some options and see what they could feasibly afford.

Shared OwnershipMy investigations have led me to, Shared Ownership, introduced in the Seventies, it is littleknown and also comes with a certain amount of stigma. Shared ownership was originally conceived as a Government-backed scheme to help key workers and low-income households buy a home, part-owning and part-renting. Traditionally, it has faced public perception issues: prospective homeowners don’t know it exists or can be deterred by complex rules of eligibility. But as the UK’s affordability and housing supply crisis bites, shared ownership is moving into the mainstream, embraced by first-time buyers.

That’s because they are struggling to get on the housing ladder: prices rose for 14 consecutive years to 2007 at an average annual growth rate of 9.7 percent and, after the 2008 housing market crash, UK cities recorded another prolonged cycle of price inflation. This, combined with cautious lending, means the largest barrier to home ownership is now the deposit. This is where shared ownership could be the answer for Richard, he could purchase a minimum 25 percent stake in a property and pay rent (at a subsidised level) on the remainder. Over time, the aim is to increase that share, own more of the property and pay less rent, which is known as “staircasing”. Richard’s household income must be no more than £80,000 outside London, and £90,000 is the threshold within London.

Monmouthshire Homesearch is a partnership between the Local Authority and five Housing Associations that operate in Monmouthshire. Applicants who are interested in getting on the property ladder can register on a separate, Low Cost Home Ownership Register. These properties will be advertised by the individual Housing Association and Monmouthshire Council.

King’s Wood Gate, Wonastow Road, Monmouth

King’s Wood Gate is a new development, offering affordable homes in the historic town of Monmouth. With a range of high quality homes available through Monmouthshire Housing Association (MHA) – from 1 bedroom apartments to 4 bedroom family homes. Homebuy is a low cost home ownership scheme that helps people to buy new, affordable housing in Monmouthshire.

The scheme is intended to help those who can access and afford a mortgage but are unable to purchase a property to meet their housing need on the open market. Homebuy can provide an equity loan to fund part of the of the property purchase price to someone buying a new home through MHA.

If you are interested in buying a home in King’s Wood Gate through MHA’s Low Cost Ownership Scheme, please contact Capsel on 0333 207 9000 or email for further information.

Bank House, NewportBank House

Pobl Living has a few developments offering shared ownership. Bank House, Newport is Located in the popular area of St Julians, Bank House sits in a prime location alongside the impressive River Usk and just a stone’s throw from Newport’s cosmopolitan urban centre. The Lofts at Bank House is the first phase of the 200 home development, offering 20 contemporary two bedroom apartments.

Scholars Gate, Rogerstone

Also offered by Pobl Living Scholars Gate is situated in the popular village of Rogerstone, just 3 miles from Newport city centre. A small, select development of 20 houses for sale, Scholars Gate has great transport links; just a couple of miles from the M4 and with easy access to Pontypool, Newbridge and Abergavenny. For further information see