b'4.0 / Future of Shared OwnershipSO Resi by Metropolitan Thames Valley 4.0 / Future of Shared OwnershipSO Resi by Metropolitan Thames Valley4.0 / Future of Shared Ownership 4.0 / Future of Shared OwnershipProposed Government changes Here we set out some of the pros and cons of the rest ofto Shared Ownership the Governments proposals. 10% shareIn September the Government announced a raft of proposals to make shared ownership an easier route to home ownership. It sees the value and opportunity in the tenure to helpThe current minimum initial share you can buy is 25% but the Government wants to people onto the housing ladder and is looking to address some of the issues that prevent lower this to 10% to open shared ownership to more people. There are three potential or deter people from buying this way.problems with this. Making shared ownership more accessible is important to help more people access homeShared owners are responsible for all the repair and maintenance costs of their homes ownership but a balance needs to be struck so that it remains a viable product for providersregardless of how much they own. It can already feel unfair that those with just 25% share and investors.have to pay 100% of the maintenance costs with 10% share it may become even more inequitable.There needs to be clarity about what shared ownership is and what it isnt and consistency in the offer so that it is better understood, something which was highlighted in SheltersThere are also questions of overall affordability. Most people enter shared ownership to Homes for forgotten people report in 2013. eventually own their property outright. If only 10% is affordable then complete ownership looks more out of reach. The market hasnt managed to achieve major scale because successive governments have kept launching new piecemeal schemes, changing the rules ofRent payments have to be factored in as it is proportionate to how much is owned and the game, making it hard for consumers to know their options, and for mortgagegoes up each yearas do service charges. If the vast majority of what is paid is rent then lenders and the wider industry to get behind it in a meaningful way, the annual increases could accrue quite quickly making it more difficult to save up or extend states the report.mortgage payments for staircasing.A single standardised version of the product would reduce customer confusion and helpCambridge Universitys research found that the average initial share bought was 42%, to present clear messaging around share ownership, something generally supported bysubstantially more than the minimum of 25% which implies that the minimum share isnt a providers and stakeholders.barrier to entering into shared ownership. Is shared ownership the right option for someone who can only afford 10% of the value of the home?There may also be a problem securing a mortgage on a 10% share if the amount falls below the minimum amount that mortgage lenders can offer.While the option for buying an initial 10% is likely to boost demand from buyers there was a feeling among those surveyed in Cambridges research that it would make it more difficult to develop as the repayment on the capital expenditure is much smaller initially.14 / Shared Ownership Market Review 2020In conjunction with Cambridge University Shared Ownership Market Review 2020In conjunction with Cambridge University / 15'