Fri 22 Nov 2013
A new report from independent thinktank the Resolution Foundation has found that shared ownership could be a viable option for low-income families in Britain looking to get a foot on the property ladder.
The Resolution Foundation suggests that more low and modest-income families across the country could get their feet on the property ladder if the shared ownership model is more popularised. This type of ownership could be affordable for single-child families on £22,000 a year in 87% of local authorities in Britain.
Under the shared ownership scheme buyers are required to purchase at least 25% of the equity in a home and pay a low rent on the remaining share owned by a housing association. Assuming they spend no more than 35% of their net income on housing costs, it could be a feasible option for many would-be home owners.
Vidhya Alakeson, Deputy Chief Executive at the Resolution Foundation, said: "Shared ownership must enter the mainstream, becoming the fourth tenure in the UK, alongside traditional ownership, private and social renting."
The Resolution Foundation is dedicated to achieving better living standards for the 15 million people in Britain on low and middle incomes.