Yorkshire and Humber seeing ‘sustained demand’ for shared ownership purchases
The Yorkshire and Humber region has seen sustained demand for the Shared Ownership (SO) property buying model, according to a new report.
The SO model is a government-backed scheme where a buyer purchases a percentage of a property, usually between 10 and 75 per cent, and pays rent on the remaining amount.
The new report found that while national policy changes in 2021 made entry into Shared Ownership more accessible – reducing the minimum initial share from 25 per cent to 10 per cent – analysis shows that Northern shared owners are staircasing towards full ownership in fewer, but larger steps.
The data comes from real estate advisor CBRE’s Future of Shared Ownership report.
The firm said that the shift reflects higher savings ratios during a period of elevated inflation and interest rates.
Alex Cakkos, senior director, CBRE Affordable Valuation and Advisory Services, said: “Shared Ownership has evolved into a key pathway to ownership in regions like the North West and Yorkshire, where affordability remains a challenge.
“As inflation falls and confidence strengthens, we anticipate an uplift in staircasing and delivery through the new funding programme,”
In Yorkshire & the Humber, SO homes account for around three per cent of social housing stock and just over one per cent of total housing stock. SO purchasers in the region pay around £350 less per month than the open market and circa £200 less than private renters.
The model has, however, proved controversial. A report published last year from a Levelling Up, Housing and Communities Committee argued that the Government should take “urgent and significant action” to reform how shared ownership schemes operate.
The report stated: ”Shared ownership has historically been considered to provide an affordable route to homeownership. However, it has failed to deliver on this for too many people, for too long.
“In particular, rising rents, uncapped service charges, liability for repairs and maintenance costs and complex leases make shared ownership an unbearable reality for many people seeking to become 100 per cent homeowners.”
Paul Hawkey, senior director, CBRE Residential Capital Markets, however, said the scheme is poised to play a “pivotal role” in delivering future housing.
He said: “Shared Ownership is entering a new phase where policy clarity, stronger consumer protections and £39bn of Social Affordable Housing Programme funding, are converging to scale delivery and boost confidence. As inflation gradually cools and staircasing becomes more accessible, we expect renewed demand and deeper investor engagement, with Shared Ownership poised to play a pivotal role in delivery the next generation of affordable housing.”