Northants new homes provider outlines benefits of buying new with Shared Ownership

Shared Ownership has increasingly become a more viable route onto the property ladder, with the start of 2024 seeing a 152% sale increase when compared to last year at Platform.

This route towards homeownership allows buyers to purchase a share of their home and pay rent on the remaining amount, typically buying between 10% and 75% of the property’s full market value, depending on the model purchased with.

This lowers the amount needed for a deposit, with most deposits on Shared Ownership schemes between 5% and 10% of the share and not the full amount.

Buyers can then gradually increase their owned share in their home, all the way up to outright ownership.

Sabina Cox, Marketing Manager at Platform, said: “With purchasing a home being a major financial commitment, especially in a time of economic uncertainty, Shared Ownership provides a variety of benefits compared to purchasing through private sale.”

“We’re pleased to be outlining the benefits of Shared Ownership, where we’re seeing constant growth and great feedback about how it has helped those who may otherwise have not been able to secure their dream home to do so.”

Here are Platform’s top five benefits of buying new through Shared Ownership.

Smaller deposit size -

One of the major reasons that Shared Ownership homes are more accessible is that the deposit is much smaller and takes less time to save for. This is because buyers put down a percentage based on the share they are purchasing, rather than on the full market price.

This allows a variety of home seekers to purchase more quickly, getting onto the property ladder earlier on and allowing for greater financial security.

Fewer costs on maintenance -

With all of Platform’s Shared Ownership homes being newly built, homeowners will be covered by a 10-year build warranty. This means buyers will likely spend less on maintenance of their homes allowing for more disposable income which can be spent on other methods for upgrading their home or elsewhere.

Lower energy bills -

New-build homes are proven to be on average more energy-efficient, both in the build process and for buyers too. According to a recent report from the Home Builders Federation (HBF), compared to an existing property, owning a new property would save 58% on energy bills and an annual average saving of £1,884.11[1].

Fewer refurbishments needed -

A new-build Shared Ownership home will be purchased as complete, with a fresh and modern specification. Existing homes will have suffered more wear and tear meaning new homeowners will likely have to spend less on refurbishments, as their homes are built to be equipped for the demands of modern living.

Ability to staircase -

Those purchasing through Shared Ownership are given the freedom to have control over how much of their home they wish to own.

The process of buying more shares is known as staircasing. This is when the owner can gradually increase their owned share, up to 100% full ownership, when they will no longer be required to pay any rent on top of the mortgage. This allows for a more flexible method of home ownership.

For more information on Platform Home Ownership, please visit www.platformhomeownership.com