National Housing Federation SHARED OWNERSHIP IS THE WAY FORWARD

24 May 2007

The National Housing Federation is calling for the government to invest more resources in flexible home ownership schemes to help people on salaries of around £25,000 to £30,000.

Since 1997, house prices have risen by 139 per cent but earnings have risen less than 25 per cent and first-time buyers are increasingly making shared ownership their chosen route into home ownership. Associations want the government to increase funding for affordable home ownership schemes that allow people to buy flexible shares to suit their individual purse.

Speaking at the conference of Affordable Home Ownership Providers in Manchester, the Assistant Director, National Housing Federation, Helen Williams said:
"To hope for a fall in house prices is unrealistic in the current housing market. Shared equity deals or part-buy, part rent schemes are the only possible way most low to moderate earners are going to get on to the property ladder.

"At the moment this type of ownership may be a niche market, but in the future it could well become the norm. The government needs to do more to help people on moderate incomes to access this type of home ownership product."

During 2006, Housing Associations provided over 25,000 shared ownership or shared equity homes, up from 16,000 the previous year.

The federation is calling on Gordon Brown for a massive increase in investment in affordable home ownership and affordable rented accommodation to help those on housing waiting lists and the lowest incomes. At least 150,000 new affordable rented homes are needed over the next three years as part of the forthcoming Comprehensive Spending Review.

Ms Williams added:
"A good supply of affordable homes for rent and buy is crucial for a stable housing market and to meet the needs of people on lower incomes."