15 September 2023

Demystifying Shared Ownership: Common Myths and Misconceptions

Shared Ownership provides a great stepping stone onto the housing ladder. The scheme allows you to part buy, part rent your home with a low initial deposit. It’s perfect for those who are unable to access the open property market. Based upon your affordability, you can buy an initial share of your home between 25% and 75% and then make a monthly rent payment for the remaining share. The many benefits and the potential of the scheme are often overlooked because of some of the myths about Shared Ownership. We’re here to set the record straight when it comes to Shared Ownership and debunk some of the common misconceptions surrounding the scheme.

Myth 1: Shared Ownership is the same as social housing.

Reality – simple – no! With Shared Ownership you own your own home. You have a mortgage (albeit a smaller one) and then you pay rent on the remaining share. With social housing you sign tenancy agreements and rent the property from your local council or housing association. Shared Ownership is a foothold onto the property market enabling you to buy your own home outright.

Myth 2: Shared Ownership is only for low-income individuals.

Reality – whilst it is a more popular choice for those with lower incomes as it provides a fantastic opportunity to get onto the property ladder it is not exclusively for low-income individuals. You can be accepted for a Shared Ownership scheme if you have owned a property in the past or are currently selling a property and are looking to relocate or even upsize. The number of shares you buy in the property is flexible depending on your affordability. 

You are eligible for Shared Ownership if:
  • You have a household income of less than £80,000
  • You have no ties to any other properties on completion
  • You are unable to buy on the open market
Myth 3: Shared Ownership means you only have a limited choice of properties.

Reality – wrong! There are plenty of options available through Shared Ownership. From flats to houses, resale to new builds. Here at Space Homes we have a wide range of options available, from our more modest 2 bedroom houses in Milby Grange, Boroughbridge to our spacious 4-5 bedroom homes in Ellerwood, Skipton. Take a look and see what we can offer you.

Myth 4: You can’t sell a Shared Ownership property.

Reality – yes you can! It is absolutely possible to sell your property at any time and you will even benefit from any increase in value. Simply put, you have a right to sell your share of the property. As a part owner of the property, we would have first refusal on the opportunity to buy the property, however, if you own 100% of the property you can sell it yourself privately. Contrary to popular belief you will not be stuck with a home you no longer want, or need should your circumstances change and you wish to sell.

Myth 5: You can’t make changes or improvements to a Shared Ownership property.

Reality – this is another common misconception! Want to redecorate, add your own personality and character to your home? Go ahead! Let your budding interior designer run free. Whilst it’s true that any structural alterations may require permission from the other shareholder, painting the walls, decorating and any non-structural alterations are allowed.

Myth 6: Shared Ownership means you will always have a housemate.

Reality – absolutely not! Not unless you want one of course. Another common misconception is that someone else will buy the other share to your house, hence you will always have a housemate. This is simply not true! When you buy a Shared Ownership Property with Space Homes, we own the remaining shares. This enables you to buy the share you can afford whilst being able to treat the home 100% as your own.

Shared Ownership is a flexible scheme that makes owning your own home more affordable. Don’t be put off by the rumours and myths about shared ownership. Hopefully we have demystified shared ownership so you can see its true value and potential. If you think this might be right for you or have any more questions about the scheme chat to our friendly team now to find out more.