28 Aug, 2019/ by Homeward Legal /First Time Buyer
A new national model for shared ownership aims to help thousands more low earners become homeowners.
The Government has announced a shake-up of its Help to Buy schemes to encourage greater home ownership across England.
Reform of staircasing
Shared ownership allows first-time buyers and some movers to buy a proportion of a new home, usually from a housing association, which retains ownership of the rest with the buyer paying rent on that proportion.
The home buyer can then buy further shares of their home in 10 percent increments, a process known as staircasing, with the ultimate goal being complete ownership.
The new proposal could seen buyers being able to buy further shares of their home in 1 percent increments.
The aim is to make it easier for those on low incomes to get a mortgage.
More people on housing ladder
Housing Secretary Robert Jenrick said: "We know that most people still want to own their own home, but for many the dream seems a remote one.
"My mission is to increase the number of homes that are being delivered and to get more young people and families on to the housing ladder, particularly those on lower incomes.
"That's why I am announcing radical changes to shared ownership so we can make it simpler and easier for tens of thousands trying to buy their own home."
The Help to Buy shake-up will also include the ability for home buyers to take out a 35-year mortgage, again increasing affordability for those on lower incomes.
Get more information on Help to Buy here.