Shared ownership homes to become more important – Bromford

SHARED ownership housing is set to play an increasingly important role in England’s housing market as house prices continue to rise, according to new research from 20 leading housing associations, supported by the National Housing Federation.

Continuing shortfalls in housing supply compared to the UK’s growing population will help to push house prices higher – leaving more and more people unable to buy a home on the open market.

With affordable rented housing severely rationed, intermediate housing solutions like shared ownership will become vital if housing needs are to be met effectively, argue the housing associations.

The Government’s independent advisors on housing supply, the National Housing and Planning Advice Unit, believes England needs at least 237,500 new homes built every year until 2026.

But in 2009 just 118,000 new homes were developed – only half the number required – and housing supply has only reached 200,000 homes once in the past 30 years.

The associations said this helped explain why house prices have boomed since 1996 and why, even in a severe recession, house prices went up in 2009.

The new report, ‘The role of shared ownership in the future housing market’, calls on a new Government to protect public funding for new shared ownership housing when grant levels for new homes over the next three years are decided later in 2010.

Mick Kent, chief executive of Midlands-based Bromford Group – one of the 20 housing associations that commissioned the report – said: “Shared ownership is a uniquely powerful product in the housing market. It is relatively cheap for the Government to fund, it frees up social tenancies and reduces waiting lists, it increases new housing supply, and it supports many first time buyers to achieve their home ownership aspirations in an era of continuing high house prices.

“It remains hugely popular with customers and demand always outstrips supply. New ministers and mortgage lenders must get behind shared ownership and recognise the crucial role it is going to play in our housing market over the next 20 years.”