London's First Time Buyers Use Shared Ownership to Get Onto The Property Ladder
The Government-backed Shared Ownership initiative has become one of the most accessible and achievable ways for first time buyers to get onto the housing ladder. Here at Family Mosaic, we have conducted research of our Shared Ownership purchasers from last year at a number of our developments in Hackney, Lambeth, Lewisham and across London. The research identifies the real benefits for first time buyers purchasing through the scheme.
The results reveal the average full property price at a Family Mosaic development was £407,176 in 2015, a significant saving in comparison to the London open property market where overall average property prices last year came in at £545,709¹. Additionally, the average percentage purchased of one of our homes in 2015 was 33%, meaning an average initial share value is more affordable at £134,368.
This is further supported by recent figures from comparison website Gocompare.com, who in 2015 discovered that most Londoners remain ‘trapped’ in private renting, needing to earn an extortionate £140,000 a year to afford an averagely-priced flat in the capital². With these findings in mind, Shared Ownership is a welcome alternative as our research found that buyers at our developments had an average household income of £46,714.
With the high costs of London living, saving up for a deposit is often difficult for London renters. Shared Ownership is once again another helpful route onto the ladder with our research showing that buyers had an average deposit of £36,158, in comparison to needing £91,4093 for a property on the open market.
We are also pleased to report that 56.4% of purchasers at our developments in 2015 previously lived or worked in the borough in which they bought. One such buyer among these proving the benefits of Shared Ownership was Natalie. After renting in London for many years, Natalie was desperate to take that first step onto the property ladder and buy a place of her own.
In May 2014, Natalie achieved her dream and bought a one bedroom apartment at our north London development, Market Green, N7 via Shared Ownership.
“I was previously renting near Kings Cross, and knew I wanted to stay in Islington, but after looking at the property prices in the area, I didn’t think it was going to be possible. I hadn’t heard about Shared Ownership before a friend mentioned it. After doing a bit of research on the initiative, I became really excited - buying through Shared Ownership meant I didn’t have to compromise on location or quality.”
Originally purchasing 60% in 2014, now, less than two years later, Natalie has been able to buy a further 25% of the flat, bringing her up to a total of 85% ownership. Natalie continues: “A lot of hard work has gone into the process, but it’s worth it. I often see a lot of negative headlines talking about the London property market. It’s really important that first time buyers are made aware of Shared Ownership and the affordable options available.”
Want to know more about Shared Ownership?
You can access a number of useful and informative tools on our Shared Ownership hub. Here, you can find a guide to Shared Ownership, eligibility details, resales information and more.
For any further details on upcoming developments, please feel free to use the property search on our website.