12 Finance & legal Helping hand


Could shared ownership properties be the key to getting on the London property ladder? Words by Charlotte Duck


With the rising cost of living, buying a property in London is looking less and less likely for the vast majority of people. Luckily, there are a number of government-led schemes that could offer a solution. Shared ownership (SO) is one of them. SO is when you buy a percentage


of a property, with a deposit and mortgage, and pay a service charge and rent to a housing association on the remainder. Te idea is that you then ‘staircase’ the percentage you own, buying more as and when you can afford it. Te scheme was introduced in the 1980s but has become increasingly popular, especially in London, due to the rising costs of buying property. But, if you’re thinking of SO, what should you be aware of?


The pros Te main advantage SO offers is a chance to get on the housing ladder earlier than you typically would. “Being able to get on the property ladder was a big selling point for me, and there’s no way I could have done that in London without SO,” says Louise Smith, a policy adviser who owns a 35% share in a two-bedroom flat in Bow. “I was also really keen to live on my own and even paying the mortgage, rent and service charge


was cheaper than renting a flat by myself.” Another unexpected plus for


Louise has been the sense of community she’s encountered. “Moving into a block that’s almost entirely SO means that lots of my neighbours are of a similar age and life stage to me, so I’ve made some really good friends, which can be difficult in a city like London.” New legislation means that you


can now purchase as little as 10% of a flat’s value. Although, it’s obviously important to remember the smaller your share, the more rent you’ll pay. With shared ownership, you’re buying a long lease and the good news is that these leases are now for 990 years, when they were previously 125 years.


The cons While SO offers a route to home ownership, there are negatives too. “Mortgage options are fairly limited when compared to standard home ownership,” says Mark Humphrey of MHC Mortgages. “You also need to factor in all the monthly costs. You may also be required to contribute to maintenance work.” Louise agrees, saying that one of


the biggest drawbacks is that you have to pay in full for any issues. “Also, check the lease as early as you can in case there are any clauses that will impact your plans. I didn’t know until we were really close to exchange that I wouldn’t be able to have pets, for example.” Meanwhile, Louise’s rent and


mortgage have both increased this year. “Make sure you’ve worked out whether you can afford a fairly large rise and be aware the rent will go up by inflation every year.” And when the time comes, SO


Being able to get on the ladder was a big selling point for me. I couldn’t have bought otherwise


properties can be difficult to sell on as, according to Mark, they can prove more expensive and take longer than a standard sale. “SO should be viewed as a leg-up


onto the housing market,” says Mark, “rather than a long-term option as it’s a halfway house between renting and owning.”


20TH MARCH 2023 THE GOOD LIFE DISTRIBUTED WITH SHARED OWNERSHIP HOMES CAN BE DIFFICULT TO SELL ON / GETTY


Healthy Homes Healthy Lives


The Healthy Homes Healthy Lives Programme (HHHL) was created by London Rebuilding Society, a not for private profit organisation that has been delivering home improvements for 15 years. The programme is part funded by the Government through Innovate UK. It offers access to products and services commonly only available to the better off – access to home improvements, retrofit, renewables adaptations, and in-home smart technology. The scheme aims to help at least 100 homeowners although there is funding for more.


With the cost of living crisis and spiralling energy costs, we are working closely with organisations such as SELCE (South East London Community Energy) and CREW (delivering low-carbon solutions, energy advice and community outreach in South-West London) who have taken part in our panel discussions at recent local events.


The focus on smart energy included as a key aspect of the HHHL programme was one of the main features that interested Innovate UK, long before the current fuel cost crisis emerged.


The LRS team provide a service to renovate or repair homes to enable homeowners to remain independent and happy at home for longer. This service includes looking at energy efficiency, hazards in the home, and security (financial, physical and mental) – a financial package that makes sense, physical (ensuring windows and doors are secure) and mental – i.e. managing a complex renovation project is stressful, LRS manage the entire process end to end, mitigating risks that may be involved with managing building contractors.


Find out how we can help you – call us on 0207 153 1533 or visit www.londonrebuilding.com


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