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Matt's story
One first time buyer Matt saw shared ownership as an opportunity to get himself onto the property ladderShared ownership is booming amongst young people, with 26 to 30 year olds accounting for 26% of buyers according to research by SO Resi and Cambridge University.[1] One first time buyer Matt Booth (29) saw shared ownership as an opportunity to get himself onto the property ladder. He purchased a 40% share worth £100,000 [full market value: £250,000] in a one-bedroom apartment at SO Resi Redhill in Surrey earlier this year.
Matt had been renting a room in a friend’s apartment locally in Redhill but decided that he wanted to take a step onto the property ladder after receiving some inheritance money. He was able to put down a 50% deposit of £50,000 on his 40% share and moved into his new home in February 2021. Thanks to his high deposit, Matt now pays just £150 a month for his mortgage payment, whilst his monthly rent and service charge is just under £400.
Matt, a purchasing manager for a warehouse company, comments: “I have a couple of friends who have used shared ownership, and I thought it seemed like a good way to get onto the property ladder. I came across SO Resi Redhill and really liked the development – I felt that the size of the property I could buy with the money I was putting in was really good value.
“Even though I was fortunate enough to have a sizeable deposit to put down, without shared ownership it would have been very difficult for me to get onto the property ladder. I’m really pleased that I just went for it as it feels so good to have my own space now, particularly as I will be working from home half of the week going forward.”
Matt also made the decision to sign up to SO Resi Plus, which will allow him to staircase by 1% each year at a fixed price for 15 years. This was introduced in 2017 by SO Resi following feedback from customers that they would be more likely to staircase if they could purchase smaller shares.
“By staircasing gradually it means I will increase my stake in the property over time, and I will have a larger share to sell when I decide to move in the future,” adds Matt. “The 1% option is much more appealing than having to save up and put down another 10% all in one go.”
Kush Rawal, Director of Residential Investment at Metropolitan Thames Valley Housing, comments: “Shared ownership is booming and for many young people like Matt, it is the only realistic avenue onto the property ladder as it offers an accessible route to homeownership. We are also pleased that Matt has signed up to SO Resi Plus, which has been transformative for our customers, with four times as many customers staircasing each year via this route than those through traditional share purchases of 10% or more.”
Matt plans to stay in his apartment for the next few years and was keen to remain in the Redhill area after growing up locally, with family and friends living nearby.
Matt comments: “Redhill is a fantastic location and is really central for me when it comes to work and socialising. I didn’t want to have to move out of the area, so I’m pleased that shared ownership has offered me the opportunity to stay local and become a homeowner.”
[1] https://soresi.co.uk/blog/shared-ownership-market-review-2020/