Residents in social and affordable housing are being given the chance to buy a share in their home for the first time, as applications can now be made to for the government’s Right to Shared Ownership scheme.
The government has published new guidance for tenants to access the scheme, which provides an alternative pathway to homeownership.
Tenants will be able to buy a share of their property worth between 10% and 75%, giving them more control and autonomy over the home they live in.
Tenants will be eligible if they have been in social housing for three years, their property was built under the government’s Affordable Homes Programme 2021-26, and they have lived in it for a year. This option will become available to more tenants in the coming years.
Shared owners can gradually increase the equity stake in their home, with the option to eventually buy a 100% share in their property. This allows people to reduce the financial impact of buying a home, by accessing a lower mortgage and deposit.
Eligible tenants can apply for the Right to Shared Ownership by completing the new application form and returning it to their landlord, who will carry out a series of eligibility checks.
The mortgage guarantee scheme has been extended by a year to the end of December 2023, helping more people with 5% deposits onto the property ladder. Under the scheme, the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95% of a home purchase, subject to the usual affordability […]