Mel Stride

    CENTRAL DEVON MP Mel Stride has welcomed a new package of measures to help people on lower incomes get onto the housing ladder. A new national model for shared ownership will enable tenants to purchase 10% of their home and buy more of it in small increments. Currently a Housing Association tenant renting a £200,000 property cannot buy a share of that property but under Right to Shared Ownership, a tenant could buy an initial 10% stake worth £20,000, while paying subsidised rent on the remaining 90% of the property. The tenant could make up this 10% stake through a £2,000 deposit and a £18,000 mortgage. When that person or family is ready, they can then buy further stakes.

    Mr Stride said:

    “Owning your home and becoming more financially independent and secure is one of the most natural goals for any person or family and there needs to be more than one path to achieving it. Right to Shared Ownership could be a real gamer-changer for tenants who can’t afford tens of thousands of pounds for a full deposit on a private property but might be able to save £2,000 or £3,000, take out a mortgage on part of the property and then build up equity over time. Home ownership is essential for social mobility and the more people who have a financial stake in their home the stronger our communities will be.”

    The new Right to Shared Ownership will be an automatic right for tenants in new housing association properties and the Government will work with housing associations to explore how those in existing housing association properties can benefit from the scheme as well. Other measures include making all shared ownership homes more affordable by cutting the minimum initial stake from 25% to 10%.