First time buyers and renters in the East Midlands have given strong backing to shared equity schemes which are designed to help people get onto the housing ladder.
A new survey, commissioned by Miller Homes, one of the UK’s leading independent housebuilders, has shown 51% of first time buyers understand and approve of the shared equity concept, despite the fact that it was only launched in March of this year. The online survey of 3000 first time buyers and renters also revealed that 36% of first time buyers and those in rented accommodation would actively consider shared equity as an option to help them purchase their first home.
Shared equity schemes are designed to help first-time buyers, renters and those living at home move into affordable home ownership. Schemes such as Home Buy Direct, the Government’s own scheme, and MiWay, Miller Homes’ own shared equity product, are offered on specific new build properties brought forward by developers. Buyers are offered an equity loan of up to 30 per cent of the purchase price with the remainder co-funded by Government or the developer.
When asked if they would prefer a Government-run scheme, such as Home Buy Direct or a housebuilder scheme, 27% of respondents specified a Government-run scheme with 22% identifying a housebuilder scheme as their preferred choice. 51% of respondents expressed no preference for either, suggesting that most first time buyers are willing to accept help from either source.
Joy Goodman, sales director at Miller Homes East Midlands, commented: “This research demonstrates that shared equity has come a long way in the region’s consciousness in a very short time. It must be remembered that shared equity is a relatively new concept for many buyers used to a more traditional model of financing their home by raising a big deposit and applying for a mortgage. The key message is that shared equity does not mean shared ownership. The homebuyer owns 100% of their home from day one.”
However, the survey also reveals that 89% of first time buyers believe that more needs to be done to help first time buyers and renters get onto the housing ladder.
Joy commented: “This statistic suggests that the shared equity message has not reached all first time buyers and renters. Help is out there in the form of shared equity schemes which can offer you the chance of buying your dream home.”
Miller Homes has helped 400 first time buyers and renters make the move into their own home since March, but the company is concerned that time is now running out and properties are in short supply for those who are considering the scheme.
Joy continued: “Our concern now is that the deadline for Home Buy Direct completions is March 2010 which effectively means that first time buyers and renters must start their property search now. Potential buyers also have to remember that the number of homes available with Home Buy Direct funding is now running low and that the stamp duty holiday runs out in December.”
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