Latest shared ownership overhaul could make it even easier to get on to the housing ladder…
The government have unveiled plans to overhaul shared ownership to help get more first-time buyers onto the housing ladder.
Through shared ownership, buyers are able to buy a proportion of a home for a minimum of 25% then pay a subsidised rent to a housing association.
Under the current system, buyers have to purchase an extra share in their homes in 10% chunks – a process known as ‘staircasing’.
Under the new proposal, which will go out to consultation, people will be able to buy an increased stake in their home in 1% chunks, instead of the current minimum of 10%.
The plan is part of a series of measures aimed at reforming the planning system to boost the number of houses being built. Reports also hint at the idea of giving a 20% discount to first-time buyers on new homes in the areas where they grew up -the cost of which would be taken on by developers, The Times reported.
Ministers are also aiming to make it easier for people using Help to Buy to get a 35-year mortgage. A loophole banning people from taking out a mortgage with a term of more than 25 years has been closed with “immediate effect”, the government said.