Shared Ownership scheme allows people on lower income to afford a home by purchasing a proportion of the property. People can purchase a minimum share of 25% on their home and then pay subsidised rent on the rest.
The Shared Ownership scheme is under review to make it more affordable for homeowners to increase their share in the property.
Plans include allowing people to purchase more of their own home in 1% increments, instead of the current 10% chunks, which can be as much as £45,000 per time.
However, housing experts commented these changes will only be successful if transaction costs are reduced, as there are high costs to buying additional chunks. Estimates show it costs almost £2,000 to purchase additional shares on the home.
These plans are an attempt to close the opportunity gap and help millions of young people into home ownership.
If you have any queries regarding the law around property, then contact us at Audley Chaucer Solicitors.
Written by Syeda Anjum
