Could Do-It-Yourself Shared Ownership make a comeback?

For many first time buyers, affordability and rising property prices are keeping the dream of homeownership out of reach.

In our most recent buyer intention survey, 32% of respondents said not being able to save enough for a deposit is their biggest barrier to homeownership, and 36% attributed it to their salary not being high enough to borrow the amount needed. These statistics highlight that buying schemes which bridge the gap between affordability and cost are needed more than ever.

One scheme that previously helped tens of thousands of budding buyers onto the property ladder was Do-It-Yourself Shared Ownership (DIYSO). The scheme may have ended in 2009, but what if DIYSO was to make a comeback? Keep reading to find out more about the scheme and its potential to help today’s first time buyers.

What was DIYSO?

DIYSO was a homeownership scheme that was primarily available in the 1980s and 1990s. Buyers could choose a suitable property on the open market and purchase it through a housing association. The housing association would buy the property on the buyer’s behalf and then sell it back to them on a Shared Ownership basis. Like today’s model, the buyer would purchase a share, usually with a mortgage, and pay rent on the rest, with the option to staircase to full ownership over time.

How did DIYSO differ from today’s Shared Ownership model?

The main difference between DIYSO and the current Shared Ownership model is that buyers could choose almost any property they liked on the open market. Under today’s Shared Ownership scheme, homes are usually purpose-built for the tenure. The majority are new-build properties within specific developments; however, there are also resale homes where the existing shared owner is looking to sell.

Why did DIYSO work for buyers?

DIYSO gave buyers more freedom, flexibility and autonomy over the property they chose to buy. They could pick a home that suited their needs and aspirations, whether it was in a particular location or neighbourhood, or a specific type of property.

Why did DIYSO end?

Government funding for the scheme was withdrawn in 1999, and by 2009, DIYSO was replaced with newer initiatives like HomeBuy Direct – although this scheme has also since closed to applications.

While limited, specific versions of the tenure remained available – including small pockets offered by some housing associations and local authorities –  the phasing out reflected policy shifts, focusing on the construction of new-build homes. It was replaced with other buying schemes with more standardised processes.

Could the DIYSO scheme work today?

DIYSO was a popular scheme among buyers as it combined the affordability of Shared Ownership with the flexibility of buying a home on the open market.

In today’s housing market, offering DIYSO as an additional option alongside the current Shared Ownership model could lead to greater uptake of this tenure type. Launching a modern version of the DIYSO scheme – one with the policies and digital infrastructure to support both buyers and stakeholders – could broaden access, particularly in areas where Shared Ownership homes aren’t as widely available.

How would a modern DIYSO scheme benefit first time buyers?

A modern version of the DIYSO scheme could offer first time buyers a more flexible and affordable route onto the property ladder. It would give them more choice, as they could choose to buy any eligible home on the open market, not just a Shared Ownership new-build or resale home.

What’s next for DIYSO?

Whether a newer version of DIYSO will return this year remains to be seen, but it’s a viable option that could help more people achieve their homeownership dreams.

What are your next steps?

Share to Buy is the country’s leading property portal dedicated to affordable homeownership and buying schemes. If you’re a first time buyer, second stepper, growing family or someone looking to downsize, Share to Buy is your space. We’re the home of Shared Ownership, Discount Market Sale, Rent to Buy, London Living Rent and many other home-buying schemes designed to help you onto the property ladder.

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