SURVEY RESULTS: Shared Ownership can help single buyers
Majority of purchasers plan to get on the property ladder on their own
As the leading property portal for first time buyer homes, our most recent survey at Share to Buy has showed that the majority of prospective Shared Ownership buyers are planning to purchase a home on their own.
In our survey of over 2,600 users on sharetobuy.com, 57% of respondents confirmed that they are looking to buy a property solo, without the support of a partner, friend or family member. This unusual data significantly bucks the UK trend, with national statistics recently reporting that couples – both with and without dependent children – are the most common household type amongst homeowners in 2022, making up 59% of all mortgagors.
With single people requiring an average of £74,402 to secure a mortgage on the open market, it is no surprise that solo buyers plan to take advantage of Shared Ownership deposit levels in 2023 – with the average deposit for a one bedroom London apartment on Share to Buy currently sitting at £8,652. 77% of those surveyed admitted that they did not think they could currently afford to buy a property on the open market, without the help of alternative homeownership schemes.
As a government-backed scheme, Shared Ownership enables buyers to purchase a share in a home, paying a mortgage on the part they own and a subsided rent on the rest. As the buyer only needs a mortgage on the share that they are purchasing, the amount of money required for a deposit is often substantially lower when compared to buying a private sale home.
As the property market faces another year of economic uncertainty, buyers continue to be impacted by increasing interest rates and cost of living. 71% of participants surveyed said that the cost of living crisis has reduced the amount of money they are able to save for a deposit each month, but, with the help of Shared Ownership, they remain undeterred – 60% of prospective purchasers say they still expect to be able to buy a property within the next 12 months. Allowing hopeful homeowners to take a step on the property ladder at a much more affordable level, 76% of respondents confirmed they have not received any money from parents or family members to put towards their deposit.
Nick Lieb, Head of Operations at Share to Buy, comments; “It’s no secret that this is a difficult time for those looking to buy a home, with interest rates skyrocketing, and the cost of living crisis impacting how much money people can realistically save each month.
“The results of our survey are clear – affordable homeownership options, such as Shared Ownership, are now completely critical, allowing thousands of first time buyers to purchase a property in a climate where they otherwise wouldn’t have been able to. It is unmistakeable that demand is still strong – 60% of our surveyed users plan to buy in 2023, and with the help of Shared Ownership they aren’t as restricted by sky high deposits and ever-changing mortgage rates. The fact that the majority of hopeful Shared Ownership buyers are purchasing on their own is testament to how significant the support of this scheme really is.”
Share to Buy is the UK’s leading independent website for first time buyers, listing over 12,000 homes available through alternative housing schemes every year, as well as providing a wealth of independent information and how-to guides for budding buyers.
Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home buying schemes such as Shared Ownership via our article index.