EXPERTS
Is now the right time to buy?
Q I’ve been thinking about buying a home through shared ownership in London, but I’m not sure if now’s the right time? There’s been a lot of challenges in the housing market recently so I’m weighing up whether to buy now, or to wait for the market to calm down. Felicity Blackstock, Sidcup A If you’re feeling overwhelmed by fluctuating house prices and mortgage rates as a first time buyer in London, you’re not alone.While there’s been some more optimism in the first few months of this year thanks to falling inflation and interest rates leading to lowering mortgage rates, house prices still remain relatively high and affordability will continue to be an issue. The good news is that shared ownership offers an accessible route to homeownership, even in a challenging market.With shared ownership, buyers purchase a percentage share of the property and pay a subsidised rent on the remaining share.This means you can buy a property in London with a much lower deposit than purchasing outright. So while house prices remain high, shared ownership deposits are relatively low – much lower than buying on the open market. If you have the deposit to buy with shared ownership, 2024 could be a great time. Several providers in the capital offer homes you can buy with a deposit of less than £5,000. According to leading affordable homeownership mortgage adviser Censeo, which NHG Homes works closely with, there’s been a huge rise in demand for shared ownership mortgages in recent months, with a greater number of lenders and products available. We’ve even seen a new lender enter the shared ownership market with others returning or reviewing their underwriting criteria in
favour of buyers.This means more options, allowing mortgage brokers like Censeo more choice to support buyers to find the mortgage that works best for them. As demand for shared ownership homes and mortgages remains strong, there’s no guarantee of purchase for buyers who are waiting for prices to fall. As buyers pay a subsidised rent on the share they don’t own, monthly costs (including rent, mortgage and service charge) are often cheaper than renting. For example, at NHG Homes’ Kidbrooke Square in the Royal Borough of Greenwich, a one bedroom apartment starts from £92,500 for a 25% share, with a minimum 5% deposit of £4,625 and estimated monthly costs of £1,344.That compares to average costs of £1,673 when renting a one bedroom locally.With parkside, cityside and waterside developments, NHG Homes is helping buyers on to the property ladder in London, with homes that make putting down roots more affordable and attainable. For more information, visit nhghomes.com.
Phillip Wellard-Hughes
Can I decorate my shared ownership home?
Q I’m looking to purchase shares in my first shared ownership home, but I’m interested to know whether I’ll be able to add personal touches? I’m curious to find out what the guidelines are for decorating my home before I start the shared ownership application process. Daisy White, Shoreditch A Getting on to the property ladder is an exciting process for any first time buyer, and the prospect of making a home your own plays an integral part in the moving process.The good news is that with Origin, as with many shared ownership properties, you will be able to add those personal finishing touches that make a property really feel like home. Backed by the Government, shared ownership offers a fantastic pathway for aspiring homeowners to take their first step on to the property ladder.The scheme provides a unique opportunity to acquire shares in a property – usually between 25% to 75% initially – while paying rent for the remaining portion of your home.Typically, shared owners can secure their new home with a lower deposit, which can often be as
ownership home grants you the flexibility to decorate as you please. It’s your personal canvas to customise. As with any home, there are some restrictions you should consider. Undertaking substantial projects like installing a new kitchen or extending your property may have implications on your home’s valuation, meaning you should always consult your housing provider before going ahead. Our key advice for any first time buyer would be to take your time and do your research into homes that fit your criteria so that you understand all the requirements and permissions that may apply. Visit our website for full details about making your adjustment to your Origin home: originhousingsales.co.uk/ help/#1632139978518-ceff6ace-b23e
low as 10% of the share value – from just £4,469 at our flagship development, Harrow and Wealdstone Heights.* And with our latest incentive, buyers can get an extra helping hand to take that first step on to the property ladder. Origin Kickstart offers buyers a chance to receive incentives worth £2,500 for those who reserve a new home at Harrow and Wealdstone Heights.** Our new build homes are thoughtfully designed to cater for modern living, with large, light-filled living spaces, fully equipped kitchens and spacious zones for both entertaining and working from home requirements.The stylish, neutral specification of all our shared ownership homes maintains our exceptional standard of finish, while offering residents the opportunity to decorate and personalise their home to their own tastes. As a shared owner with Origin, you will have the freedom to redecorate your home as you wish.You will only need our permission if you want to make any structural alterations or significant changes. So, whether it’s repainting your walls or displaying your favourite artwork to bring colour and vibrancy to the space, a shared
Simon Scott
*Pricing starts from £81,250 for a 25% share of a one bedroom apartment (full market value: 325,000) with deposits from £4,469. **For more information about Origin Kickstart and Harrow and Wealdstone Heights, please visit our website originhousingsales.co.uk
First Time Buyer April/May 2024 91
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