Getting a step on the property ladder

Although shared ownership has gone through various transformations and product names over the years it has actually existed in its fundamental form for nearly 30 years. It all began in the early 1980s as a way of helping people onto the home ownership ladder, enabling them to purchase part of a property and pay rent to a housing association on the rest. Shared ownership is now known as part buy, part rent through the product New Build HomeBuy.

As Government appointed Homebuy agents for London, L&Q and Metropolitan Home Ownership (MHO), operate and manage housingoptions.co.uk, the one stop shop for affordable housing in London. As part of this role they are responsible for marketing affordable home ownership products and new initiatives to customers in London. For nearly 30 years shared ownership has proved a popular choice with customers and during the current financial climate it is the only way for many to make the first step onto the housing ladder.

Nic Bealey, Director of Strategy, Marketing and Sales at L&Q, explains the reasons behind its popularity, "Shared ownership promotes sustainable mixed communities, and social mobility and helps people meet their home ownership aspirations. From an industry perspective shared ownership is excellent value in terms of grant investment and cost efficiencies. Plus as a housing association we have the ability to invest the surplus generated by sales to cross-subsidise more social housing.

"From the customer's point of view it is not only an affordable product but a flexible one. At L&Q we have seen an increase in the amount of customers who buy extra shares in their property, known as staircasing, when the time is right for them – moving into complete home ownership.

"Moving forward we expect the demand for shared ownership to increase. There is a growing market of customers who have no priority with social rent but cannot afford the higher equity stakes required by shared equity models, particularly as house prices rise again.

"There is a clear demand within this market for affordable home ownership products and opportunities. Now is the time for housing associations to deliver more for this market."

HousingOptions quick facts

• HousingOptions launched on 1st April 2006 and has been appointed by the Government to continue the service from 1st April 2009 until 31st March 2011
• HousingOptions processes on average 3,880 applications from potential homeowners each month
• HousingOptions manages a database of in excess of 240,000 applications
• Since 2006 nearly 1.5 million unique users have visited www.housingoptions.co.uk
• Over 9,800 HousingOptions applicants have moved into a home since 2006
• Average monthly HousingOptions enquiries have increased by almost 12% over the last year
• Over 5,000 Londoners attended the 2009 London-wide HousingOptions show to find out more about affordable home ownership. This was a 500% increase on 2008 attendance.

Sian Jenkins, (pictured above), 50, from Bermondsey is a fashion retail manager. After more than a decade of renting in London Sian knew the time was right to buy a place of her own. Sian was attracted to the unique layout of the apartments at Bermondsey South, an L&Q development in Southwark, and chose a top floor two bedroom penthouse to be her new home. Sian had registered with housingoptions.co.uk and found out about these homes when she received a flyer from L&Q through the post. Sian is really happy in her new home.

Sian says: "I get emotional just talking about it. The process of buying was hugely simple; there was always someone to ask for advice. I felt there was a light at the end of the tunnel making me more motivated about my life and job. I can relax now and have my friends over for dinner. I feel a huge freedom which is very important to me."

This article is taken from the latest issue of Creating Places, L&Q's magazine with news and views on housing issues