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Buyers turn to affordable housing schemes

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 14 November 2012  |  Comments 2 comments

Affordable housing schemes offering shared equity or shared ownership are becoming more popular with buyers who want to get onto the housing ladder.

Buyers turn to affordable housing schemes

Almost half of first-time buyers are looking to affordable housing schemes to help them take the first step onto the property ladder.

That’s the findings of a new study by Lloyds TSB, which found that while 46% would consider using a shared equity or shared ownership scheme, one in four had already come to the conclusion that such initiatives were the only way they’d be able to buy.

Why buyers are considering affordable housing schemes

Interestingly 15% said they would not have even considered such a scheme previously, but had changed their mind as a result of the economic climate.

So what’s the selling point now?

25% of respondents said that the main reason to use an affordable scheme was that it would make their monthly mortgage payments more affordable, while a further quarter argued it would allow them to buy in an area that would otherwise be out of reach.

The different types of affordable housing schemes

Affordable housing schemes come in a number of different forms. There are two main types: shared equity schemes and shared ownership schemes.

However, there’s also the Government’s NewBuy scheme which doesn’t really fit into either category. You can find out more about Newbuy in What is the NewBuy scheme?

More on buying a property:

What is a shared equity scheme?

What is the NewBuy scheme?

What is a shared ownership scheme?

Dealing with estate agents

How to beat Stamp Duty

What is the NewBuy scheme?

What's your property worth?

The cheapest and most expensive places to buy property

What to do when a home survey goes wrong

Threatened with repossession? What you should do

How to deal with property chain problems

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Comments (2)

  • nickpike
    Love rating 309
    nickpike said

    Mugs. These are not affordable housing schemes, they are, in fact, unaffordable houses.

    Shared equity or shared ownership scheme should not be allowed. This is just building trouble in the future for these poor unfortunates. We need to get away from this fake economy, and get interest rates up which in turn will drive prices down to where they belong. It will all happen eventually anyway, so the government are making things worse by trying to prevail the status quo.

    Report on 14 November 2012  |  Love thisLove  2 loves
  • ndf9876
    Love rating 10
    ndf9876 said

    @nickpike

    I don't think it's fair to tar Shared Equity and Shared Ownership with the same brush since they are two different beasts (I have been a 'victim' of Shared Ownership so I speak from experience).

    For various reasons which probably aren't appropriate given the size of these messages, my opinion of Shared Ownership is that it's a colossal scam and a nice little earner for those involved - all except the resident. I'm glad I got out when I did.

    If you can't afford to buy a property - rent. It'll work out cheaper in my opinion and cause you far, far less headaches.

    Report on 15 November 2012  |  Love thisLove  1 love

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