Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

...that Shared Ownership is a farce for low income folks

59 replies

Lifeisabeach09 · 06/11/2018 21:27

I'm on a single income of £25,000 including overtime. Single parent with one child.

I'd love to get on the property ladder. Went to see some shared ownership properties (I'm located in the SE).
One to three bedrooms ranging from 325-595,000.
I looked at a smaller two bedroom for a whopping 455,000 with 35% share in the property: £1654 per month (mortgage/rent/maintenance) and with a 5% deposit.
Apparently, I don't earn the required minimum of £40,000 per year.
What the heck?!

OP posts:
Original poster
Lifeisabeach09 · 06/11/2018 21:48

Any thoughts? Besides move out of area or win lotto?:)

OP posts:
Thanksforallthesausage · 06/11/2018 21:50

Move somewhere cheaper to buy? My first house was 3 bedroom, semi detached and £90,000 (bought 6 years ago.)

Thanksforallthesausage · 06/11/2018 21:52

I realise you said without moving area but realistically it might be the only area if you want to buy a house

DullBrianfromHull · 06/11/2018 21:52

move out of area

I think thats it.

Im in one, its a new build. 2 bed.

Lone parent as well, working.

£160,000 - 2 bed house in S.West.

£250 mortgage. £240 rent, inc service charge.

I can own 100%.

HelenaDove · 06/11/2018 21:53

Do NOT touch shared ownership You will end up with all the responsibility and none of the perks rights

AnonyMousee · 06/11/2018 21:58

@Thanksforallthesausage yeah just pack up and move... like everyone can do that...

OP I do think Shared ownership is a bit of a farce. If you are limited on options it's ok i guess, but essentially you are still paying a lot of rent, and the landlord is able to raise rent and stop you making any changes to your home. They only offer you chances to buy a larger share when they want, and at a price they set, so if you don't have the money on hand to do so when the opportunity arises, then we'll you're stuck with your 40/50/60%. To resell a shared ownership home, you have to sell to someone who is willing to buy the same share you owned, so that narrows down your market as many people have an idea of what percentage they would like to own.

A good ol mortgage seems the best option, unfortunately, but with the help to buy scheme it's not too unachievable! Myself and my partner have just bought our first home with a deposit of 12.5k (as we only needed a 5% deposit). It's been tough saving and getting there, but our monthly mortgage repayments are around half of what our friends pay in rent per month, so it works out quite well. I'm in the south east also.

I hope you figure out a solution that's best for you Op, I understand a lot of people simply cannot save for a deposit x

DullBrianfromHull · 06/11/2018 22:07

I can buy more any time I want to.

The rent has gone up by £15 a month, so far in 3 years.

Its a beautiful house, 8 mins drive from 2 Cornish beaches, I feel very lucky that my DC & I can live in a lovely part of the world, whilst still having enough wages left to do a bit at the weekends.

I know its not for everyone, but after being in a damp cottage that was £700 a month, & the landlady not helping with major problems (oil heating leaking, windows falling out, skylight leaking, flea infestation when I moved in, etc) It put me off.

Thanksforallthesausage · 06/11/2018 22:32

@AnonyMousee I'm not saying everyone can but if home ownership is a priority then it is an option to consider. Some places are just too expensive for some people to buy houses.

MojoMoon · 06/11/2018 22:37

They aren't quick to sell but in desirable places like London, there will be buyers.

What you are getting is basically a regulated rent. The rent element can only go up by a certain percentage each year - not like a private rent when they can raise it at will or give you notice to sell the flat like a private landlord.

So if you want security, they still represent a better bet than most private rentals. But they aren't really intended to be cheap - if you live in an expensive area they will be expensive - just less expensive.

AnonyMousee · 06/11/2018 22:40

@Thanksforallthesausage definitely. We looked into shared ownership when we had a smaller deposit and seriously considered it, even went to view a couple properties. But we managed to get a bit more saved and then found a new build development we liked so we went for it. But it's not easy at all. Shared ownership does gives you that step towards ownership, but if you can avoid it will obviously be better in the long run :)

DullBrianfromHull · 07/11/2018 06:00

If we sell it goes on the SWHomes website first, then on the open market.

I rent 60% Own 40% at present.

I paid the stamp duty when I moved in as it was £540. I could have waited until I owned 50%, but I thought it was best to get it out of the way, at that amount.

KanielOutis · 07/11/2018 06:09

I feel awful for people who's only hope is shared ownership. Ten years ago I bought a whole flat for £100,000. Now that only buys a 40% share. It's madness.

BarbaraofSevillle · 07/11/2018 06:17

Well on those numbers, people on 'not low' incomes can't afford the property either.

I earn just over £40k pa and couldn't afford anywhere near £1650 in mortgage/rent etc if I was on my own, even without DC. You'd need 2 people earning that sort of money for that to be affordable.

The reality is that only a minority of people can afford to buy in the SE without inheritence etc and single people on below average incomes aren't in that group.

Keep renting or move areas is the answer unfortunately. Are you tied to the SE?

tenorladybeaker · 07/11/2018 06:34

I don't think shared ownership is a farce. Your issue isn't with shared ownership but with sky-high property prices. Shared ownership is still cheaper than renting the same property - and if that property in that location is what you want and you are unlikely to need to move then it's good. but generally you can rent less nice properties for still less so it's not always the best option.

It's clearly frustrating whenever the thing you want is too expensive to afford. Blame capitalism and join those planning for a socialist revolution. Your frustration doesn't make shared ownership a bad idea for those that it works for.

CountersurfingPerf · 07/11/2018 06:47

Shared ownership is a farce full stop.

I lost money on my s.o flat because I had to sell at a price the housing association set. If I wanted to challenge that figure it would have cost me @£500 -paid to housing association, not for valuation -and even then there was no guarantee an independent valuation would be accepted.

On the plus side I had no problems selling (beautiful flat, bargain price)
with 18 parties coming to view on 1st day.

My advice - steer well clear. Op is Help to Buy still going / an option?

TheClitterati · 07/11/2018 07:03

Buy outright if you can. If you can't SO is better than privately renting.

SO isn't necessarily "affordable housing" though.

TheClitterati · 07/11/2018 07:05

And dealing with "housing associations" aka estate agents/management companies is invariably a painful experience.

Thewheelsarefallingoff · 07/11/2018 07:08

Help to buy is better than normal shared ownership; you don't pay any rent until 5 years in. At which point, you will hopefully have enough equity to remortgage to cover the government's share.

MumOfTwoMasterOfNone · 07/11/2018 07:09

Was this Council/Housing Association? I work for one and our shared ownership rent is very reasonable but we are in a much cheaper area.
I stretched myself to buy a house 6 years ago on my own and it was a huge struggle.

The only way I could afford in the area I wanted was taking on an undesirable house which had been empty for two years but now I have enough equity to use to fund another move. It was depressing at first as I couldn't afford to do the exciting bits for a long time and it still isn't finished due to having two kids and two years' maternity leave. Is this a possibility?

ohreallyohreallyoh · 07/11/2018 07:13

The problem with ‘move out of the area’ is exactly how far do you need to go to find something affordable? It is a massive issue when you have an ex partner on the scene who wishes to remain in contact with their child. It can equally be a problem when you have an established support network including family and a job.

MacosieAsunter · 07/11/2018 07:21

Why is the simplistic advice always move ?

Lets be realistic - exactly how many people are going to up sticks, relocate umpteen miles away from family, friends, social networks, support networks, school, and work and become completely isolated in the process.

This move advice ranks right up there with spa days, doulas, get a cleaner, rent your spare room out as badgerswankshit advice by people completely out of touch with reality

anniehm · 07/11/2018 07:22

Move? Seriously those prices are crazy and if you earn ordinary wages in the long term you are better off finding a job elsewhere, we did, best move ever

whitewallflowers · 07/11/2018 07:24

@MacosieAsunter or maybe it's given by people who have actually done it and found it works as a solution? It's a matter of balancing up what is important to you, some people will be willing to and some won't but you can't say it isn't an option as people have done it.

Girlsnightin · 07/11/2018 07:42

It works by letting you live in a property that you wouldn't be able to buy with just a mortgage. You then staircase up over time. I did it and slowly bout 100% of my home. Those prices your quoting OP are outrageous. It's not shared ownership that's the problem for you, it's living in an incredibly pricey area.

ResistanceIsNecessary · 07/11/2018 07:42

Upping sticks and moving out of area is an option - and only the person involved can weight it up against being further away from friends, family, support etc. But if home ownership is a priority and you cannot afford the property you want (or indeed anything at all as is so common in the SE), then you have to move to somewhere that you can afford.

We moved out of area into a different county when we sold our last place (which was tiny) as we could only afford the tiny place in our old town. Moving to a cheaper area has enabled us to get more for our money.