Shared Ownership - here to stay?

tj_online

Someone I know is keen to buy a first property but lives in Cambridge where the prices are out of reach. Said person is considering Shared Ownership. 

Reading some bad tales about SO, but friend has also heard of folk who have bought via SO and moved on.

To a dinosaur like me it seems like writing an open cheque!

I suppose my thought is also that if SO is likely to be replaced by the First Homes scheme, and that turns out better, friend may be left with a home that can't be sold - with ever increasing costs. 

First Homes doesn't seem very active in Cambridge currently.

Anyone (especially MSE team) have any thoughts?

housebuyer143

The first home scheme in its current state appears to suit and be aimed at a different person to shared ownership. You need to be able to buy at least 50% which is more than some people on shared ownership can afford and you don't get the option to purchase 100% of your property. 

The housing association near me are planning developments with shared ownership and this is 10 years into the future planning, so they seem to see the appeal in it. I don't think you will see them disappear because for some it's a lifeline to buying a house.

Altior

I did SO, it was the best option at the time. Far lower combined cost than renting privately. However, HTB was launched the following year, and I could have bought outright with that scheme. 

I never saw the HA after the purchase again, they handed over the keys and a box file of paperwork, and that was that!

I'm fully staircased now, and did fully pay off my share before doing that. The rental element was relatively tiny to begin with, but the terms were RPI +0.5% annually. I did consider just paying the rent, but running the maths, where it could get to throws up some scarier numbers in say 20-30 years. Inflation spiking after lockdown ended, and mortgage rates remaining low at the time tipped the balance. 

tj_online

Thanks for the imput - a couple of helpful replies. I also found the Cambridgeshire Interim positioning on First Homes online (upto 2023) which also suggested that they aren't (cant) make much of it because of the housing costs - so it would seem SO around for a while yet.

I'm just amazed that the house being looked at (2 bed / new build semi) is valued at more than my 4 bed detached (in a different county of course)