Is shared ownership making it easier to buy homes in central London?
Government-backed schemes like Shared Ownership are certainly making home ownership much more accessible for many Londoners. With mortgage rates trending downwards, the market is more accessible for many, and Shared Ownership amplifies this further to support that first step onto the property ladder. As you only need to save a deposit for the share of the home you are buying, Shared Ownership enables you to get onto the property ladder with much lower deposits.
At NHG Homes, we have been able to introduce shares from as little as 10% of the market value at selected developments. This makes minimum deposits and monthly living costs even more desirable than for many rental properties in the capital. At Royal Albert Wharf, a 10% share of a one-bedroom apartment can be secured with a deposit of just £3,300, with monthly costs from £1,042.
Are monthly costs higher if i move to a more central neighbourhood?
Shared Ownership is designed to make home ownership in any given location more accessible in comparison to the open market. The exact price of any property made available through the scheme will vary depending on a number of factors including location, property size, additional amenities and the share purchased. While lower deposits make it easier to get onto the property ladder, that is only one part of the equation and monthly costs need to also be considered. The Shared Ownership scheme is only available to those with a household income of £90,000 or less in London and a housing provider like NHG Homes has a duty of care to ensure you can live in your home comfortably and manage monthly costs.
Before being offered a home through Shared Ownership, you will be financially assessed to ensure you can cover your mortgage, rent and service charges whilst still having money left over to cover other costs and enjoy life in the city. Rents and service charges are carefully managed to ensure value for money. Rents are capped at 2.75% of the unowned share value paid annually over 12 months, with limits in place on how much this can increase year on year. Not only does this prevent unwanted surprises as may be experienced in the private rental sector but often means costs are substantially lower than the equivalent for private renting.
Service charges are essential for ensuring the management and maintenance of your home and the wider development. For its Shared Ownership collections, NHG Homes is often responsible for this through the lease, and the money collected is used entirely for this purpose. Service charges therefore ensure homes continue to meet the needs of residents and preventative measures can reduce the likelihood of costly repairs in the future. Beyond property prices, it’s also important to consider the impact of other costs. Choosing a more central location, for example, may allow commuters to save both time and money on trips into the office than if living outside the city. Equally, the price of on- site amenities like co-working space or gyms mean these facilities do not need to be sourced elsewhere.
How do NHG Homes properties stand out from the competition?
Through NHG Homes, buyers can secure homes that are finished to a high standard and that demonstrate a beautiful specification. We recognise that new homeowners don’t need the added expense of buying washing machines and carpets, so we supply these as standard, creating homes that are move-in ready. Newly built, our homes typically have better energy efficiency rating than older properties, making them cheaper to run and more efficient to heat.
Does buying more centrally mean my property value is likely to go up?
You can start building equity from day one if the property value increases. If you choose to sell your home, you could therefore make a profit on the share you own. Many of our developments, such as Heybourne Park in Colindale, are located in areas where the long-term growth potential is higher. If you sell, regeneration areas often benefit from rising property values. This can mean a profit on your share.
Philip Wellard-Hughes, Senior Sales Manager at NHG Homes; nhghomes.com