Minnie Dando, head of marketing and communications at Hyde New Homes said: “House prices have continued to defy expectations. And, for those who may have thought they’d be trapped renting forever, shared ownership may be the solution.”
“One of the biggest hurdles for first-time buyers is the high deposit required. With shared ownership, buyers can pay as little as 5% of the share value that they buy, meaning they can secure their dream home sooner rather than later.” For example, a 25% share of a one-bedroom apartment at Eastman Village is priced at £82,750 – a 5% deposit on this amount is just £4,137.50.”
“Along with a mortgage, shared owners then pay a subsidised rent to the housing association on the unpurchased share, as well as any applicable service charges. Further shares can be purchased at any time convenient to the owner through a process known as staircasing, which enables homeowners to own up to 100% of their home if they so wish.”
Minnie continued: “At Hyde New Homes, we have seen a variety of buyers benefiting from the scheme. From young professionals and couples to families and even those looking to downsize – many of whom could have been priced out of the area otherwise.”
First-time buyer Siobhan O’Dwyer, a hair technician at Madame Tussauds who lives at Hyde New Homes’ Eastman Village development in Harrow (hydenewhomes.co.uk/shared-ownership-at-eastman-village) is a case in point. With its mix of shared ownership homes located on the former site of the iconic Kodak Factory, Eastman Village offered exactly what Siobhan needed.
“Being able to stay in Greater London was important to me so I could be near my parents, however the move to Eastman Village was particularly poignant for me as my Grandfather worked as one Kodak’s first computer managers, so I always think of him when we go past,” Siobhan explained, adding “It is also thanks to him that I was able to buy my home here as I used an inheritance he left me as a deposit.”
Siobhan decided to purchase a 30% share of a south-westerly facing, top-floor, one-bedroom apartment after having discussed various buying options with Hyde New Homes.
Siobhan said: “When I first started looking into buying a home, I intended to get a standard mortgage. However, I am a single homeowner and wanted to live in London, and there are slim pickings available for the size of mortgage I would have been able to secure.”
“After looking at various schemes, I decided that shared ownership was more affordable for me on a month-to-month basis; it frees up my earnings so that I have more disposable income at the end of the month.”
“When I compared the Help to Buy scheme to shared ownership, I saw that the latter was way more affordable for me on a month-to-month basis,” Siobhan continued. “I was more than eligible for both schemes, but shared ownership was hands down the better option for me.”
Sharing is caring
Over the last seven years the supply of shared ownership homes has increased with an approximate total of 75,500 new homes delivered between 2015/16 and 2020/21.
The good news is, it’s not just Londoners benefitting from this scheme.
Minnie added: “With buyers flocking from London to the coast and countryside during the pandemic, house prices are on the rise – particularly in the South East.
“However, shared ownership enables buyers to take that first, vital step towards home ownership. They can then enjoy their desired lifestyle and do up their home to their own taste or purchase more equity at their convenience, even owning their home outright.”
The average home in the South East has a price tag of £444,508, and the average buyers need an annual income of £84,000 to buy, which means there has been a steady increase of buyers opting for shared ownership.
One buyer who benefited from the scheme was Office Manager Janine Mars, who purchased a 25% share of an apartment at Hyde New Homes’ Rochester Riverside (hydenewhomes.co.uk/rochester-riverside) development in Kent.
“The pandemic gave me a chance to focus on my future,” Janine explained. “I had been saving for a deposit for some time and discovering that I would fit the criteria for shared ownership, I started researching new developments in the local area.”
The location, just a short stroll to Rochester’s historic city centre, worked well for Janine, who fell in love with the city’s array of independent shops, restaurants and cafés. The development’s convenient location next to Rochester station offers a convenient commute to London with a regular, fast train service taking just 36 minutes.
“The scheme meant my budget could stretch to two bedrooms, which is a real bonus,” Janine continued. “This apartment is a long-term investment, and I am already planning to increase my equity share, and eventually buy my home outright.”
Get a step up on the property ladder
Hyde New Homes are currently offering one- two- and three-bedroom apartments for shared ownership at Eastman Village, starting from £82,750 for a 25% share of a one-bedroom apartment.
Rochester Riverside’s next phase will be launching this October, with a collection of one- and two-bedroom apartments and three-bedroom family homes becoming available for shared ownership.
For more information about Hyde New Homes, to arrange a viewing appointment or register your interest in any of their developments, please visit hydenewhomes.co.uk.
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