Only 35% of prospective first-time buyers (FTBs) can accurately define shared ownership, The Mortgage Lender (TML) reveals.
TML suggests that some knowledge gaps could be preventing FTBs from taking steps towards their property goals.
The lender’s research shows that 17% of FTBs thought that shared ownership meant co-owning with your family while 14% were under the impression that shared ownership meant sharing responsibility of being landlord on a property.
A further 8% believed it meant owning with a stranger and 7% identified it as owning with a friend.
Another 14% said they didn’t understand shared ownership at all, and 5% said it meant owning a few rooms in a house.
With two thirds (65%) either defining shared ownership incorrectly or being unable to do so at all, it’s clear that there is a significant knowledge gap around this alternative route to home ownership.
Alongside this, recent research from the Building Societies Association (BSA) found that over the last 70 years it has never been a more expensive time to be a first time buyer than now.
As part of the BSA’s report they called for radical support from the government to support FTBs.
TML’s latest research indicates that current mechanisms to help FTBs enter the property market may not be being utilised as much as they could be.
TML head of corporate accounts Louise Apollonlo says: “The first hurdle to get onto the ladder is raising a deposit, which is particularly difficult for those renting who are also dealing with steep rental price rises. However, that doesn’t mean that they wouldn’t be good candidates for owning a property.”
“Shared ownership provides an opportunity for first time buyers to get a step onto the ladder without the need for a huge deposit, allowing them to slowly work up to total ownership of the property.”
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