Only 28% of 18-24 year olds know what shared ownership is and how it works, with only 19% of property buyers in the last ten years using a government buying scheme to secure their property, with a smaller 6% having used the shared ownership scheme, according to research from TotallyMoney.
According to data from the Office for National Statistics (ONS), the average cost of purchasing an entry-level property has increased by 20% across England and Wales in the last decade, reaching £140,000.
Amongst those surveyed, the findings revealed that the British public’s lack of knowledge on the shared ownership scheme is deterring them from using it to their benefit. While 40% of first-time buyers admitted that they needed financial support from family and friends to buy, even with a mortgage, only 19% had taken advantage of a government-backed scheme.
However, once the participants were provided with the correct definition of the shared ownership scheme, 38% of first-time buyers stated that they still would not consider utilising it, with 35% of them displaying concerns over hidden additional fees.
Commenting on the findings, a TotallyMoney representative said: “With entering the property ladder becoming increasingly difficult, and with this step being so important to many, it’s important to clear the smoke that exists around the schemes existing for first time buyers today in order to help them make the best financial decision.
"Though many do not have a rounded understanding of what the Government Shared Ownership Scheme is, for those that do understand it can be a useful tool to become a homeowner. We have conducted this research and created this guide to open up understanding on Shared Ownership for those looking to buy so that they too can take advantage of it.”
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