Government to extend shared ownership scheme

The Prime Minister David Cameron will today announce the government’s intention to expand the shared ownership scheme in his keynote speech outlining the government’s progress on delivering upon its manifesto.

The scheme will be revamped so a further 175,000 aspiring homeowners can take advantage. Rules dictating that only those in certain professions or living in a certain area will be changed. From April 2016, anybody earning below £80,000 in England (£90,000 in London) will be able to purchase a stake in a property.

These changes to shared ownership will see people with a regular source of income but with low savings being able to purchase 25% to 75% of a property with a deposit and mortgage. The remaining stake in the property will be owned by a housing association, with rent payable to them on the remaining share, which can be up to 3% of the association’s share of the property value.

The Prime Minister is expected to say: “For years, we’ve had shared ownership, where you part-buy, part-rent a property. So many people are attracted to this idea, especially those who thought they’d never have a chance of owning a home.

“But, because it’s been heavily restricted, many of those people have missed out. We’ve had local councils dictating who is eligible, based on everything from salary to profession to where the buyer comes from.

“From April next year, that will make 175,000 more people eligible for home ownership. It means some people will be able to buy a house, for example, in Yorkshire, with a deposit of just £1,400. It will be opened up to people of any occupation, the only restriction being that you have to earn under £80,000, and £90,000 in London.

“Yet again, a government that delivers, building a nation of homeowners.”

The post Government to extend shared ownership scheme appeared first on UK Construction Online.