£1billion of Unsold Shared Ownership Housing
The Housing Corporation have told the junior housing minister that the total value of unsold empty properties could be as much as £1bn.
Iain Wright, the junior housing minister, was told in a recent meeting that the value of shared ownership properties had risen by % since March.
The chief exec of the Housing Association, Steve Douglas, has admitted that they have been looking at the options to resolving the problem of unsold stock, but that they were yet to conclude the study.
The downturn of the market has meant that many housing associations have reduced developments but the Government is still relying on the housing association sector to continue providing and building new homes.
The housing associations in much of London have told the Government that unless changes were made to their funding, targets were likely not to be met. This news comes out as housing association Genesis is said to be in trouble financially, although the Government have denied this.Genesis have £158 million worth of shared ownership housing on their books and need to get people into them quickly.
If you are interested in finding your own shared ownership property, then contact Click n Go Mortgages for advise on your mortgage options.
Shared ownership schemes were once the only alternative route to home ownership to those who not only wanted to get on the housing ladder, but actually needed somewhere to live. Provision of affordable rented homes having been reduced by housing associations in favour of providing more homes for shared ownership. Encouraged by Government policy and public grants.
Before the current financial crisis, escalation of property values made shared home ownership schemes less attractive compared with the freedom of home ownership offered with a 100% mortgage. One bedroom flats in London on shared ownership cost in excess of £900 per month, and private rents being about the same.
Now, people who could not really afford such costs are in trouble and may lose their homes because of their debt. That is an indictment of Government policy. If affordable rented homes were available such indebtness would have been avoided.
H,A, shared ownership schemes have become a ‘Con’. Those on low to medium incomes not ever likely to be able to afford to buy more shares in their home and so will remain a minority share holder and a tenant, subject to a Housing Association’s restrictions. Such schemes should now be abolished and the Government re-directing funding to renterd homes and the ‘Home Buy (interest free loans). Large Housing Associations are no longer the altruistic bodies that they once were, but businesses intent on profit and career opportunities.
Bryan Latter
Comment by BRYAN LATTER — Sunday, November 02 2008 @ 1
Shared ownership schemes were once the only alternative
but have now become a ‘Con’. Those on low to medium incomes not ever likely to be able to afford to buy more shares in their home and so will remain a minority share holder and a tenant, subject to a Housing Association’s restrictions. Such schemes should now be abolished and the Government re-directing funding to renterd homes and the ‘Home Buy (interest free loans). Large Housing Associations are no longer the altruistic bodies that they once were, but businesses intent on profit and career opportunities.
Bryan Latter – tel: 020 7433 1325
Comment by BRYAN LATTER — Sunday, November 02 2008 @ 1
Very much the modern day ‘Little red hen’.
She wanted corn – I wanted a house.
She bought the corn – I bought 50% of a house.
She sowed the corn, with no help – i fixed and modernised the house , with no help (finacialy or physicly).
All said and done, at the end of the day, the associaion will recieve half the market value on a house they have not done, helped or put money forward to fix.
With my rent , i pay back a loan that is their 50% of my house. By the end of my 25 year time limit I must buy up the remaining shares at the going market value, so technicaly, it is buying the house one and a half times.
Plus i have to pay ALL solicitor fees, valuation ect. Like i did in the beginning when i bought this property, No half marks there either. I am now so disollusioned with the whole scheme and yet i can not escape, can not afford to buy up the other half and neither in it’s current state does it qualify to be put on the market.
So if you are thinking about buying into this SCAM, read the small print.
Comment by sharon — Wednesday, July 08 2009 @ 1
As a shared owner I am positive they will have to change the law to make it possible for shared owners to sublet their properties – otherwise it will not be possible to sell the remaining stock – and of course, put a cap on those service charges!! -
Comment by Beatrice — Thursday, July 15 2010 @ 1