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Affordability caps mean the scheme doesn’t stack up in London’s ultra prime neighbourhoods — wave goodbye to the idea of a little flat in Belgravia or Marylebone — but, while not without compromises, shared ownership allows buyers to find a first flat for a fraction of this, even in Zones 1 and 2.
Battersea, Zone 1
Average house price: £1.16 million
25 per cent share of one-bedroom shared-ownership flat: £141,250
10 per cent deposit: £14,125
New Mansion Square in Nine Elms
/ HandoutBattersea Power Station’s redevelopment has thrown a spotlight on this riverside section of London, with its brilliant park, leafy streets and the new shops and restaurants at the revived landmark.
While a home within the power station itself wouldn’t leave you much change out of £10 million, at New Mansion Square prices start at £133,750 for a 25 per cent share of a studio right beside Battersea Power Station Tube on the Northern line.
City Angel in Angel
/ HandoutAngel Islington, Zone 1
Average house price: £921,650
25 per cent share of shared-ownership studio: £117,500
10 per cent deposit: £11,750
North London is notoriously expensive, particularly if you want to live within walking distance from the delights of Upper Street.
At City Angel, buyers are located between this Islington institution and Old Street’s Zone 1 Tube station.
Kanwal Kaur bought at The Silk District in Whitechapel
/ HandoutWhitechapel, Zone 2
Average house price: £640,380
25 per cent share of one-bedroom shared-ownership flat: £126,250
Minimum deposit: £6,313
Until Kanwal Kaur discovered shared ownership, she believed she was priced off the property ladder.
But her budget allowed her to pick up a 40 per cent share of a one-bedroom flat at The Silk District, five minutes’ walk from Whitechapel’s Zone 2 station with its Elizabeth line services.
Kanwal works as a business manager for the NHS by day, but in her free time the 47-year-old loves to cook and share her recipes online.
“As a keen baker and cook, having a gorgeous kitchen/dining space has been a dream for hosting dinner parties and the development is close to the market where I can source ingredients,” she says.
Acer Apartments in White City
/ HandoutWhite City, Zone 2
Average house price: £656,750
25 per cent share of shared-ownership studio: £126,250
Minimum deposit: £6,313
For buyers aspiring to a west London property, White City is an ultra-convenient choice with its two Central line Zone 2 Tube stations, and the 400-plus shops and 100-or-so restaurants and bars of Westfield London on the doorstep.
The Acer Apartments at White City is a new development set right beside Westfield.
Arcadia View in Lower Clapton
/ HandoutLower Clapton, Zone 2
Average house price: £730,050
25 per centshare of one-bedroom shared-ownership flat: £106,250
10 per cent deposit: £10,625
Price growth in and around Hackney over the past five years has pushed it out of the reach of many first-time buyers’ pockets.
But Lower Clapton, with its Overground station, easy train links to the City, open spaces of Hackney Marshes and an increasingly great range of restaurants, could still be an option.
Arcadia View is a collection of one, two and three-bedroom flats set at the northern tip of the marshes.
Each of the 44 flats in this low-rise development has a private balcony, with monthly costs estimated at around £1,500.
What to look out for: the pitfalls
⬤ Shared ownership is more expensive on a monthly basis than renting or buying. Not only will you have monthly mortgage costs, but the rent will come due, too. If you can stretch to a second bedroom you could take in a lodger — but that defeats the point of finally getting a place to yourself.
⬤ Beware sneaky service charges. Monthly service charges nominally pay for cleaning and maintaining communal areas. But some residents have experienced massive hikes in charges after a few years, or end up paying for facilities they can’t access.
⬤ Staircasing can trip you up. You’ll be buying your shares at market value, and house prices rise much faster than wages. Each time you buy another share, you pay for a survey and solicitors’ fees, stamp duty, and the housing association will charge a fee, too.
⬤ It can be harder to sell. You have to go through the organisation you rent from, which usually reserves the right to market the property itself for up to 12 weeks before you can go through an agent. You’ll also have to pay for the valuation that sets the price you’re allowed to sell at.
⬤ Neighbouts can become the competition. If you’re one of 1,000 first-time buyers, you’re likely to try to upsize around the same time. You’ll have to jostle for buyers with other identical properties.
⬤ Small deposit in, small deposit out. The attraction of shared ownership is you don’t have to save up the huge deposit. But this also means that you will have less to put towards your next home when you get your deposit back, plus your share of the sale profit.
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