How shared ownership could get you on the property ladder with a small deposit

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  • January 17, 2023
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Shared ownership is a great route on to the housing ladder. The ongoing squeeze on disposable income makes affording a first home seem harder than ever.

If you’re not in a position to buy outright and your household income is below £90,000 (£80,000 outside London), shared ownership could be the answer as it enables you to purchase a percentage of a property and pay rent on the rest, with the opportunity to buy further shares later on.

The deposit is lower than standard because it is based on the initial share you buy, which under new rules has been reduced from 25 per cent to a minimum 10 per cent of the full market value.

Huntley Wharf, Reading

Deposit: From £4,000

Move to Reading to take advantage of lower prices than in London without compromising on commuting time. At centrally located L&Q at Huntley Wharf, one-bedroom shared ownership flats start from £71,875 for a 25 per cent share of £287,500, and you’ll only need a £4,000 deposit. The homes are half a mile from Reading’s Elizabeth line station, from where it’s a 25-minute journey into Paddington,

Acer Apartments, White City

Deposit: From £6,375

White City has become very desirable, with some top-notch developments and an average property price of £765,000. Or, you could pay a fraction of this for a shared ownership home at L&G Affordable Homes’ Acer Apartments in St James’s White City Living scheme, next to Westfield London.

All the studio, one and two-bedroom flats have full-height windows and über-contemporary white kitchens, from £127,500 for 25 per cent of £510,000 with a minimum five per cent deposit of £6,375. There’s an open day this Saturday, from 10am-4pm,

Beck Gardens at Langley Court, Beckenham

Deposit: From £8,688

Excellent schools, green space and an easy journey into London make Beckenham a highly sought-after, if pricey suburb. The average buyer pays £605,000 but you can find your first home from only £86,875, based on a 25 per cent share of £347,500, in the newly launched second phase at Beck Gardens at Langley Court. Each flat has a balcony, patio or terrace and a parking space, and monthly outgoings on a one-bed are estimated at £1,169, which is £70 less than the area’s average rent of £1,239,

Cordage Works, Walthamstow

Deposit: From £6,437.50

A averagely priced flat in trendy Walthamstow is just shy of £420,000, typically requiring a ten per cent deposit of over £40,000. Alternatively, why not snap up a spacious two-bedroom shared ownership home with a south-facing balcony or terrace at Nu Living’s Cordage Works, near Blackhorse Road station? From £128,750 for 25 per cent of £515,000 and you can put down a five per cent deposit on the share you buy – a far more reasonable £6,437.50.

Tandem, Bow

Deposit: From £39,750

Under the new shared ownership model, the minimum share is dropping from 25 per cent to ten per cent. The revised scheme launched in April 2021 but developments where this smaller share’s available are scarce.

One of them is Tandem in Bow, where one and two-bed flats with balconies start from just £39,750, based on a full market value of £397,500. Affordability will be assessed on your ability to pay rent on the share you don’t own as well as the mortgage, and monthly costs are about £1,151, far less than renting a similar property privately. From Poplar HARCA through to Share to Buy.

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