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  • First Time Buyer

    Millennials lack awareness - Shared Ownership

    Millennials aged 18-24 are the least aware of Shared Ownership as a method of helping people unable to afford a home, despite being the group most likely to benefit from the scheme.

    YouGov national research* commissioned by Leeds Building Society found that three-quarters of people in the UK have heard of Shared Ownership, however among 18-24 year olds awareness is as low as 40%.

    Almost 40 years after the launch of Shared Ownership, awareness was found to increased with age, with 83% of 55s and over, 79% of 45-54s, 78% of 35-44s and 70% of 25-34s aware of the scheme.

    Of the 18-24 year olds who were aware of the initiative, 20% revealed they had no understanding of the scheme beyond knowing it existed.

    Shared Ownership was originally introduced to providing an opportunity to purchase a share of a property and pay rent on the rest. Over a quarter (26%) of 18-24 year olds were unaware of this fact and thought ‘Shared Ownership’ meant buying a property with friends, family or a partner.

    Once made aware of the correct definition of Shared Ownership, 24% of 18-24s said they would be ‘very likely’ or ‘fairly likely’ to use the initiative in the future – the highest among the age groups surveyed.

    Jaedon Green, Director of Product and Distribution at Leeds Building Society, said:

    “Shared Ownership as a method of purchasing has been around since the 1970s and offers a realistic way of getting onto the property ladder. It’s a proven formula that helps people secure a home, even where a traditional mortgage is not affordable, and its longevity is testament to its success.

    “The method is becoming increasingly popular for first time buyers as it reduces the need for a significant deposit, which can be difficult for some to manage. The scheme also permits first time buyers to combine it with a Lifetime ISA, maximising any deposit.

    “However, awareness still needs to be raised about the benefits of Shared Ownership, as it continues to be misunderstood and underused by many of the people the scheme was designed to help, particularly those aged 18 to 24.

    “The fact that almost a quarter of those aged 24 or under would be likely to use Shared Ownership once they found out how it worked shows the importance of increasing awareness and educating those who would benefit most from Shared Ownership.

    “At Leeds Building Society we’ve been supporting Shared Ownership for more than 30 years and are committed, through our broker partners, to helping those less well served by the wider mortgage market.”

    The Society won the title of Best Shared Ownership Mortgage Lender at the 2018 What Mortgage Awards for the third consecutive year.

    Here is our video on this topic:


    View the Shared Ownership Checklist by Kate Faulkner by clicking on this banner:


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    Shared Ownership has undoubtedly helped many in a past era (of high wage growth) to staircase to full ownership and then on to ownership in private sector.

    Today my perception is the only remaining benefit is the security of tenure vs PRS.

    That longer term security does though come at a cost - with Rent/Service Charge/Mortgage rate all likely to increase over time.

    Since 1979 on long term average Social Rents doubled every 9 yrs (8% cagr) - though every SO is different and there is no universal rent charge applicable so due diligence is needed.

    Staircasing can have adverse outcomes as on resale you then have a smaller pool of future entrants able to qualify for the higher mortgage/deposit involved.

    In a nutshell for most applicants - if they cannot afford a 100% mortgage at outset - in today's low wage growth era they are unlikely to be able to in future.

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    Totally agreed. It helps sell shiny new-build flats, but 10 years down the line when no-one has paid off any more than the bare minimum and you want to sell on, then you'll find it was a great 'scheme'.

    I must admit I found myself wholeheartedly nodding in agreement three words into the title "Millenials lack awareness...." ;->

    Unfortunately millenials are being sold the rental lifestyle at every turn - homes, phones, cars. Actually owning anything outright will be a strange feeling.

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    That latter process probably started 40 odd yrs ago - when car dealers effectively became branch offices of finance companies and thereby earned maybe more from the financing than any profit on the car sale.

    Of course the latest smartphone sounds very affordable when punters are told the contract is only £1 or £2 a day - even if total contract price is over £1200 plus.

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