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Monday 22 August 2011

Affordable Housing - Shared Equity / Shared Ownership

Halifax has produced a survey which evalues affordable housing options in England since 2007. The information was gathered from Tenant Services and the local Government.

45,000 new homes have been built within the bracket of affordable housing schemes. In 2006/07, 5% of houses being built were part of the affordable housing schemes. In 2009/10 it's up 8% to 13%.

The affordable housing schemes include shared ownership and equity support options being provided by house builders and the local Government. This support has made owning a property possible for buyers unable to find the minimum deposits or who can't afford the repayments on the full mortgage.

The price of properties has declined in recent years as a result of the recession however the property prices are still too expensive for most first time buyers to afford. The support to create affordable housing supports local businesses and house builders alike, not to mention the first time buyers themselves.

Some shared equity schemes are paying as much as 40% of the property value upfront, leaving the house buyer to obtain a mortgage for the remaining 60%. The 40% loan within the shared equity scheme usually lasts for 10 years - by which time the property value should have increased and your mortgage will have been paid for 10 years.

4 comments:

  1. This is awesome, I hope I can find a report like this for the US! I'm sure it's out there, I just need to look for it.

    Kayla

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