Interest in shared ownership scheme rising: Moneyfacts

Data collected by Moneyfacts shows that the number of lenders offering products through the shared ownership scheme has risen in the last 10 years.

The figures show that in 2009 there were 17 lenders who offered shared ownership products, whereas in 2019 this has grown to 26.

Moneyfacts finance expert Darren Cook says, however, that criteria seems to have changed very little over the past 10 years while the composition of the lenders has.

“A decade ago,” he says, “15 of the 17 mortgage providers which facilitated mortgages for the scheme were building societies.

“However, even though this number has reduced to 14 by 2019, we now have a good representation of 12 non-building society mortgage providers in this specialised market.”

Some lenders report that growing interest in the shared ownership scheme may be down to the imminent end of the Help to Buy scheme.

Ipswich Building Society chief executive Richard Norrington says that this is particularly true in areas where property prices are above the national average.

He says: “Our shared ownership offerings are designed to appeal to the young professional demographic who are trying to buy in London and the South East, areas synonymous with higher property prices.”

Melton Building Society head of sales Dan Atkinson says: “The number of shared ownership properties continues to increase, with over 200,000 now in the UK.

“This is likely to continue to increase as the government’s HTB scheme is phased out over the coming years.”

Newbury Building Society lending manager Roger Knight adds: “Shared ownership has been growing in prominence with various government pronouncements and promises of funding over the last couple of years.”

He says that the HTB equity loan has taken most of the headlines, with other government projects being pushed to one side. However, he believes that shared ownership is a thriving sector and is predicted to continue to grow.

“We also expect further growth in private schemes as well as continued growth provided by housing associations,” he concludes.

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