A third of first-time buyers aren’t aware of the Shared Ownership scheme, which could help them get on the housing ladder sooner and with a smaller deposit, according to research from Leeds Building Society.
The survey, conducted in October, showed that 35% of first-time buyers had never heard of Shared Ownership, and that just one in five (19%) of those who had purchased recently used the scheme.
Of those who are planning to buy a home, only around one in ten (13%) of first-time buyers are planning to use it to help them buy.
Richard Fearon, CEO, Leeds Building Society, said: “There is a clear lack of awareness of Shared Ownership among the UK’s first-time buyers – this needs to change.
“It’s more expensive than ever to buy a first home and it’s evident that many savers still view a traditional mortgage as the way to get their first set of keys.
“As an industry, we need to educate people about the benefits the scheme can bring and take responsibility for helping more people to get on the housing ladder.
“It’s not enough to mention it as an afterthought, or even not at all – first-time buyers should be told up front about Shared Ownership and how it can help them.”
Survey respondents told Leeds Building Society why they weren’t going to use Shared Ownership, and several of the main reasons were based on preconceptions about the scheme.
Nearly a third of first-time buyers (28%) believe that a Shared Ownership mortgage would be more expensive than a traditional deal and around one in five (19%) think that it’s too complicated.
A worrying insight is that 17% believe Shared Ownership ‘isn’t for people like them’.
The reality of Shared Ownership is quite different, meaning first-time buyers can buy their home more quickly and with a smaller deposit.
More than three quarters (77%) of those who bought a Shared Ownership property said they didn’t need to save as much for their deposit and just under three quarters (72%) said it got them on the ladder sooner than if they’d used a standard mortgage.
Furthermore, nearly three in five (57%) said there was a good range of Shared Ownership properties available where they wanted to live, and three quarters (74%) were happy with the property they were able to buy.
Once all respondents who had not heard of the Shared Ownership Scheme were told about what it is, just over two fifths (41%) said it would either help them get on the ladder in future or could have if they’d known about it sooner (6%).
However, most people heard about Shared Ownership through word of mouth (18%) – only 3.4% found out about the scheme through a mortgage broker, 4% from their bank or building society, and 6% from an estate agent.
