Shared Ownership

Overview

House prices in North Shropshire have risen sharply in recent years.  Many people are now in a position where they cannot afford to buy or rent a home in their local area.  North Shropshire District Council recognises this and is working to increase the supply of affordable housing in the area.

Affordable is defined as of an adequate standard, which is offered at a lower cost than that which is generally available in the local market.  This may be social rented or a form of low cost home ownership (LCHO). or through the national Home Buy Scheme.

There are a range of LCHO options on the market, with new products being developed over time.

Shared Ownership

Shared Ownership is where a percentage share of the property is purchased.  The remaining share is held by the organisation from whom the purchase was made. 

In North Shropshire this is usually a Registered Social Landlord (RSL).  Rent is often payable on this remaining share although some schemes do not require this.  Depending on the nature of the scheme, further shares can be purchased (called staircasing).  Some schemes may allow staircasing to 100% purchase until the property can be purchased outright although increasingly a maximum percentage cap is being used to ensure the remains affordable in perpetuity, particularly in rural areas.  Purchasers should be aware that house prices could go up or down.