Will Shared Ownership properties come down in price?

willsonline

Having a keen interest in SO schemes at the moment i was wondering whether shared ownership prices will come down along with the rest of the market?

There prices seem to be rather high and are stuck, for example there are 1 bed appartments going for 140-150k in Portsmouth, very nice spec but surely these would come down a little.

I don't know lol.

What do you guys think?

Helga14

I think housing associations will be slow to drop the prices as they will have already agreed a price with the builders. They only drop the prices if no one wants to buy them at the price they are currently selling it.

But who knows really?

poppy10_2

During house price crashes, there is a "flight to quality." Shared ownership properties will be amongst the hardest hit - they really make absolutely no sense in a falling market.

Nenen

This shared ownership property has dropped from £69,000 to £58,750 (according to property-bee)
http://www.rightmove.co.uk/viewdetails-19248734.rsp?pa_n=2&tr_t=buy

Richard_Webster

There prices seem to be rather high and are stuck, for example there are 1 bed appartments going for 140-150k in Portsmouth, very nice spec but surely these would come down a little.

If the 50% SHARED OWNERSHIP PRICE WAS £140-£150k making the alleged market value £280-£300K then that is plain crazy!

Hopefully OP was referring to alleged market value of £140-£150K with shared ownership being a proportion of that - it is rather high for a 1 bed. What are 2ndhand1 bed flats going for now in Portsmouth?

I think people should be careful about buying SO particularly flats, but I think those who say don't do it at all fail to recognise that some people can only get mortgages for say £70-£80K and that is all they can afford - so they don't have as many options.

mpsavuk

Perhaps if prices do come down dramatically then SO makes less`sense as FTB's will be able to afford 100% of a purchase price again.

Which is nice!

SouthCoast

Just my experience a few miles east of Pompey.

As nobody could afford to buy some new build shared ownership 1/2 bed flats they are now being let out by the HA.

In another HA development key workers could not afford the rents so they had to be reduced.

poppy10_2

Richard_Webster wrote: »

What are 2ndhand1 bed flats going for now in Portsmouth?

Plenty available for 60-70k on rightmove.

willsonline

I can only get a mortgage for £60,000 if i were to buy now, hence why SO is the only option really. But if popp10 is saying there are 2nd hand flats on the market for the above price it might be worth looking at!!!

Avoid the service charges at least!

dmg24

poppy10 wrote: »

Plenty available for 60-70k on rightmove.

Are there? The majority are shared ownership, and the few that are 100% are just nasty (no offence to anyone that might live in them )! x

PasturesNew

I had a 50% share in a SO property in the last crash. I bought it in about 1990/91 and sold it back to the council in 1997.

I was in negative equity (this was back in the days when I had a repayment mortgage too, no Interest Only mortgages back then).

I sold it back to them by writing out a cheque to the mortgage company for 5% of the price I originally paid.

It is highly likely, therefore, that whoever next bought it bought it cheaper than I did 7 years earlier.

A SO property would have to fall in price because a mortgage is still based on the valuation of the property. And it can't hold its price JUST because it's a SO and just because the HA/council WANT the original price. They will have to fall in price too, appropriate to the house and the local market.