Affordable Shared Ownership – New for Project Two
In response to the interest in affordable shared ownership from the 2019 Housing Needs Survey, Project Two will have 10 homes for affordable shared ownership as well as 21 for social rent. The same local connection rules will apply as to Project Two rented properties and as in Fullers Close.
As the name implies, tenants can buy a share in a home, say 30%, whilst paying rent on the remainder (in this example, 70%). Headline features are:
- shares can start at 10% purchase (with 90% rent)
- shares can be purchased by cash or be supported by a mortgage
- larger shares can be bought over time, proportionately reducing the rented share. Appropriately, this is known as “staircasing”.
- ECLT’s Project Two will allow staircasing up to 100%, which is a special rural exemption.
- As and when an owner with 100% wants to sell, it will be compulsory for Two Rivers Housing to buy that home (independently valued). Whilst this is useful to the selling owner, it means that Two Rivers can re-advertise that home at 10% minimum share, keeping it affordable in perpetuity.
- there is a separate register for people interested in shared ownership, which handles new and future sales: https://www.helptobuyagent3.org.uk/help-to-buy-schemes/applying-shared-ownership/
ECLT and Two Rivers Housing conducted public drop-ins in July 2021, attended by an expert in shared ownership, from Two Rivers (seated left, below).
This exercise will be repeated in 2022, once the homes are partly built, valuations are known and people can make informed judgements about what they can afford.
Much more detail is available in this Shared Ownership Handout from Two Rivers.