L&Q: Get informed with a complete guide to Shared Ownership

Shared Ownership continues to increase in popularity for individuals looking to get on to the property ladder

With news that deposits for Shared Ownership properties are less than half the London average, and the median income required being less than £50,000, getting a foot on the first rung of the property ladder is attainable for more than many realise.

Leading housing association L&Q has reported that the average deposit of its Shared Ownership buyers in 2021 was just under £22,000 in London, and £18,000 elsewhere, in comparison to the open market, where the average deposit for a first time buyer is now reported to be in excess of £50,000 in London, and £27,000 elsewhere.

As house price growth continues to outstrip wage inflation, Shared Ownership is becoming an increasingly popular and attractive route to homeownership. The challenges and barriers to homeownership are well documented, with options available from various sources offering support in taking the first step. L&Q is passionate about developing better places to live and is committed to building homes and services to suit a whole range of aspirations, incomes, and stages of life.

Internal living room image of L&Q's Brunel Street Works - Shared Ownership homes available on Share to Buy

In 2021 alone, L&Q sold 750 Shared Ownership properties across London, the South East and the Midlands. Despite being one of the most popular buying schemes, due to the structure of the scheme lowering many of the financial barriers to homeownership, information on the nuances of the scheme is not readily available.

Recognising a need to demystify this route into homeownership, L&Q has launched Our Complete Guide to Shared Ownershipa dedicated manual providing all the ins-and-outs on the part-buy part-rent process.  

Shared Ownership is the government-backed part-buy part-rent scheme in which purchasers can buy a percentage share of their home and pay rent on the remaining portion. As and when purchasers can afford to, they can buy larger shares in their home, through a process called ‘staircasing’. By reducing the initial outlay and keeping monthly payments at a manageable level, Shared Ownership can accelerate getting onto the property ladder compared to buying on the open market, whether buying as a single purchaser, or as a couple.

Internal office image of L&Q's Brunel Street Works - Shared Ownership homes available on Share to Buy

Overall, in 2021, 48% of L&Q’s Shared Ownership purchasers were single purchasers, and 40% were under the age of 30, showing the part buy part-rent scheme is a popular option for those looking to get on to the property ladder by themselves.

Claire Brenlund, Sales and Marketing Director at L&Q comments “As one of the UK’s leading providers of Shared Ownership homes, the team at L&Q are extremely passionate about helping hopeful buyers onto the property ladder. Our first-hand experience of supporting thousands to purchase homes over the years has given us a unique insight into the queries of buyers surrounding the scheme. Our Complete Guide to Shared Ownership aims to give a fully transparent overview of Shared Ownership, including the advantages and disadvantages of buying a home this way, to help potential purchasers determine if it’s the right route for them.”

To find out more and download Our Complete Guide to Shared Ownership, visit lqhomes.com

Share to Buy is a one stop shop for affordable homes. On our website, you can search for propertiescompare mortgages and find out all you need to know about alternative home buying schemes such as Shared Ownership and Help to Buy.