David Cameron has announced reform of rules concerning shared ownership.
He is looking to expand the scheme to 175,000 households, up from 135,000. Households that are eligible are those earning under£80,000 in England or £90,000 in the capital.
People can buy a stake of 25%-75% in a property via a deposit and a mortgage. Rent is then paid on the remaining share, which can be up to 3% of the housing association’s share of the value of the property.
Mark Hayward, managing director, National Association of Estate Agents (NAEA), said: “It’s welcome news that the government is putting the proposed plans for expansion of shared ownership into action. By relaxing some of the existing restrictions, a potential 175,000 aspiring homeowners will be given the opportunity to own their own home, as well as allowing existing shared ownership homeowners the opportunity to step up the ladder.
“However, as with all housing promises, they can’t come quick, or big enough. There is still a huge issue with supply and available land upon which to build, not to mention the physical bricks, mortar and labour to do so. The house building industry is desperately short of human resource and if we are to get Britain building the number of new houses required, we need to address this problem to create actual homes and not aspirational targets.”