UCL and Sage Homes produce Shared Ownership report

This year UCL, commissioned by Sage Homes, produced a report looking at the maturing Shared Ownership market over the past decade.

The launch event saw a panel of six panellists, including Chair Helen Collins of Savills UK, discussing the research and the Shared Ownership market as a whole.

The report produced many important findings including the fact that Shared Ownership contributes between 6-11% of the total supply of new house stock (depending on region). It is the main gateway to ownership for households on incomes between £30,000 and £40,000.

The average share purchased in an SO home is around 40%, worth circa £110,000 with a mortgage amount of £90,000. The average rent paid by an SO owner is between £300 and £400 per month.

The report also shares that repossessions happen in less than 1% of total homes between 2009 and 2019 and clearly remains a last resort solution. Risks for institutional investors are low and the asset has infrastructure-like characteristics. Lenders are covered by the Mortgage Protection Clause in the SO lease, reducing their exposure to credit risk.

You can read the full report and its findings here.