A package of measures to help people in the UK on lower incomes get onto the housing ladder was unveiled by Housing Secretary Robert Jenrick MP on 28 August.
The government will review a new national model for shared ownership to make it easier for people to buy more of their own home, including allowing them to buy in 1% increments rather than the 10% required under the previous scheme. In some areas this amounted to increments of up to £45,000 per time. This process of increasing the stake until the property is bought outright is known as ‘staircasing’.
People use shared ownership to buy a proportion of their home – which can be as little as 25% – and then pay a subsidised rent on the rest.
This step will help to fulfil the Prime Minister’s priority to level up the whole country, closing the opportunity gap and helping millions of young people into home ownership.
Robert Jenrick said, “Building the houses this country needs is a central priority of this government. We know that most people still want to own their own home, but for many the dream seems a remote one.”
“My mission is to increase the number of homes that are being delivered and to get more young people and families onto the housing ladder, particularly those on lower incomes.”
“Help to Buy, the cut to Stamp Duty and our home-building programmes are already making a real difference, but I am clear we need to go much further if we are to make the housing market work.”
The Housing Secretary also announced he will look to reform the planning system to increase housing delivery and make home ownership more affordable for people looking to buy their first property, particularly in areas which are least affordable.
The government has also closed a loophole with immediate effect that prevented people from taking out a mortgage with a term of more than 25 years.
The change means homeowners can reduce their monthly mortgage repayments by spreading their borrowing over a longer period.
Photo: Housing Secretary Robert Jenrick MP