News

The majority of young people are unaware of help available to buy their first home according to research by BBC Radio 1.

Three quarters of those polled aged 18-29 said they had no or limited knowledge of shared ownership schemes which are designed to help would-be house buyers get on the property ladder.

Under the scheme the buyer takes out a mortgage on part of the property and pays a monthly rent on the other part, usually to a housing association or property developer.

The main benefit of these types of schemes are that a reduced deposit is required, sometimes as little as 5% compared to up to 25% which may otherwise be required. It also enables buyers to stretch the amount they could otherwise borrow to afford a new home in area they would otherwise be priced out of.

Scott Neal, marketing manager at LPC Living, the Salford-based developer owned by the Pervaiz Naviede Family Trust, commented “While shared ownership doesn’t suit everyone it can be an ideal way for young people to realise their dream of home ownership, particularly for those on low incomes. We would encourage would-be buyers to do their homework and consider all their options when looking to buy their first home”.

According to the report 170,000 homes have been purchased in this way.