With property prices continuing to rise across greater London, getting onto the housing ladder can feel impossible for many buyers. Shared ownership allows you to purchase just a portion of a home – between 25% to 75% – and pay subsidised rent on the rest that you don’t yet own. This can make buying in high-priced areas like London much more affordable.
Photo by Olga Lioncat: https://www.pexels.com/photo/the-shard-skyscraper-in-city-7245340/
Focusing on Affordable South East London
In prime South East London areas along the Overground lines, shared ownership has surged. Lewisham, Greenwich, and Woolwich have seen new builds with 25% to 75% equity shares for purchase. These well-connected areas offer young professionals especially the ability to get on the property ladder.
Recent data shows just how many shared ownership properties are available in South East London:
- Lewisham – Over 750 active listings with shared ownership options from studios to 3-bedroom new builds across the borough. Neighbourhoods like Catford, Ladywell and Deptford have proven especially popular.
- Greenwich – More than 650 active shared ownership properties available now. Hotspots include Eltham, Thamesmead, and Woolwich where major development continues.
- Woolwich – Over 300 shared ownership homes currently available. The area offers lower prices than other South East London areas but with great transport and improving social amenities.
These South East London areas offer the affordability and lifestyle perks to make shared ownership work wonderfully well for many first-time and move-up buyers today. The extensive development underway across these zones also means the availability of shared ownership stock will continue expanding moving forward.
How Shared Ownership Works
As part of the application process, Shared Ownership agents thoroughly assess your finances, savings track record, and income to determine eligibility and customise offerings. This allows buyers who save steadily and earn at least £25k per year in most cases to buy through Shared Ownership programmes.
With Shared Ownership, you purchase a portion of 25% to 75% of your home initially. You’ll then pay subsidised rent to a housing association on the remaining share that you don’t yet own. Over time as your finances permit, you can choose to “staircase” and buy larger shares eventually owning your home outright.
Here’s a brief overview:
- Make an initial purchase of between 25% – 75% share based on affordability.
- Pay a subsidised monthly rent typically below market rates on the remaining share.
- Have the option in future to staircase and buy additional shares as desired.
- Potentially own your home outright eventually – even in the expensive London market.
While shared ownership has some drawbacks like restrictions on selling in early years and annual rent increases, this remains an invaluable mid-point between renting and full ownership. For those struggling to buy in the traditional manner, it offers a way forwards especially in well-located markets like South East London.
Shared Ownership Offers the stability of HomeOwnership
Shared Ownership delivers many of the big benefits of traditional home ownership even buying just a portion initially:
Greater Housing Stability No more dealing with private landlords who may sell or change rental terms. Shared Ownership provides more stable housing once purchased.
Building Home Equity
Your initial share purchase means you start building equity in your home straight away. As you staircase to larger shares, you build your ownership stake over time.
Personalise Your Home
You can decorate, renovate and make changes just like a homeowner once your initial share is purchased. This allows you to put your own stamp on your flat or house.
Work Towards Outright Ownership
Staircasing provides the future option to own your home outright. And no further rent or mortgage payments in retirement delivers financial security.
In a city with steep prices like London, Shared Ownership grants more residents the chance to stabilise their housing, put down roots in local communities, and grow their equity stake over time. That makes it an invaluable scheme supporting property accessibility across the capital.
Evaluate Your Shared Ownership Options Today
With extensive development and expanding choices for shared ownership buyers, South East London provides the perfect entry point. The affordability, amenities and transport links here make it easier to make lower cost shared purchases work well.
Reach out to local estate agents and developers to see what Shared Ownership opportunities match your budget and needs. The first step is registering with Share to Buy agents covering South London to assess your eligibility, such as Keaze for example.
Join information sessions and explore new properties as soon as they’re listed to get a competitive edge too. Competition moves quickly, but properties on the Keaze website offering shared ownership in London remain an avenue into London home ownership for ambitious buyers willing to act decisively and can be seen on the Keaze website from those links.
Know the Pros and Cons Upfront
While shared ownership opens a path to home ownership, it’s wise to understand the model’s pluses and minuses fully before purchasing:
Pros
- Lower Upfront Costs – Only need a mortgage & deposit for your purchased share. This is often 25%-40% of the full price.
- Below Market Rent – The rent paid on the unsold share is typically set around 2.75% of the share’s value, below private rents.
- Increase Ownership – You can staircase and buy more shares over time with few restrictions until you own 100%.
- Often New Builds – Many shared ownership listings are new or recently built units coming online.
Cons
- Limited Early Resale – Most schemes limit resale in the first 5 years depending on staircasing. This reduces flexibility.
- Rent Increases – Rent can go up annually by inflation + 0.5% meaning rising costs over time.
- Lease Terms – Like flats, most shared ownership properties come with long 125+ year leases. You own the property itself but not the land.
- Location Limitations – Listings tend to be focused in farther outskirts of London as opposed to prime central areas.
As with any property purchase, your due diligence is key. Consult with mortgage advisers and analyse historical staircasing policies in the building or estate you’re considering. This gives you better insight on potential ownership percentages and timeframes to expect.
Explore Developer Options
In addition to housing associations who offer the majority of shared ownership stock, private developers have also increasingly built shared ownership homes for first-time London buyers:
Berkeley Homes
This large developer offers multiple shared ownership projects across London with a focus on high-quality new builds. Current developments with shared ownership options are available in Chiswick, Acton, Islington, Harrow and more.
L&Q Homes
L&Q has extensive developments featuring shared ownership listings across the city. Priority ballots are open now for upcoming properties in Harrow, Romford, North London and more areas over the next 24 months.
Redrow London
Redrow launches exclusive shared ownership phases at many of its new build estates in Enfield, Ilford, Tottenham and other communities. The developer offers dedicated first-time buyer seminars and purchasing assistance too.
Build-to-rent developers like Get Living and Fizzy Living also offer shared ownership flats integrated into rental communities. This grants buyers access to luxury amenities often only found in higher priced blocks.
Casting a wide net and evaluating all available listings is key to maximise options as a shared ownership buyer. Signing up for new launch alerts and paying attention to planning applications for pipeline developments in your preferred areas is wise too.
Shared Ownership Supports London’s Future
For London to continue thriving, moving ahead, attracting and retaining young families and professionals is crucial. Quality affordable home ownership models like Shared Ownership enable this critical demographic growth and stability.
The scheme allows nurses, teachers, service workers and other vital professions to plant roots here. In turn they provide the essential services supporting London’s diverse communities and economy.
As more purpose built shared ownership homes come online the coming decade, ownership chances will only increase across all the boroughs. Supported by city government and housing associations, these programmes expand avenues to stability and drive inclusive neighbourhood development.
For home buyers feeling locked out of London’s climbing prices and eager to gain control of their housing future, shared ownership warrants an in-depth look today.
