Private Shared ownership (3 point Guide)

Private Shared ownership was a proposal put out by the government in late 2018 to try and get private investors and companies to drum up more innovative approaches to home ownership.

As of today, the result of the consultation is still being analysed. You can for updates here

There are some innovative startups with models similar to the shared ownership scheme but as of today, the providers of shared ownership homes are mostly social housing providers.

They include:

Catalyst housing Ealing shared ownership

WDH shared ownership

Southern Home ownership

Grampian housing shared ownership

Catalyst Housing shared ownership

Optivo shared ownership

Knighstone shared ownership

Equity Housing shared ownership

Hyde shared ownership

Fortis living shared ownership

Genesis Housing shared ownership

Redrow shared ownership

Bromford housing shared ownership

The shared ownership scheme is a first-time buyer scheme provided by the Government to help you get on the property ladder quicker. With shared ownership properties you will essentially own part of the home and pay rent on the side you don’t own.

The rent can be reviewed at any time and you can own 100% of the shares if you want to stop paying rent. To do this you will need to get a shared ownership mortgage.

Alternative Government schemes

Shared ownership schemes are not the only ways to get on the property ladder. You can also use a host of other government schemes to get on the property ladder.

Some of the Governments help to buy schemes include:

  • Lifetime ISA– gives you a government bonus of £1,000 if you save a maximum £4,000 a year.
  • Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
  • Help to buy equity loan– gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership– You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy– similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy– This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy– allows you to buy your home at a discount price.
  • Preserved right to buy– same as above.
  • Right to acquire– similar to the above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.