Two in three (65%) prospective first-time buyers cannot accurately define shared ownership, a new study from The Mortgage Lender (TML) has revealed.

The lender’s research has highlighted several knowledge gaps and suggested that many potential buyers could be missing out on this route to homeownership.

According to the study, 17% of first-time buyers thought that shared ownership meant co-owning with their family, while a further 14% were under the impression that shared ownership meant sharing responsibility of being landlord on a property.

TML also found that 8% of respondents believed it meant owning with a stranger, 7% identified it as owning with a friend, while another 5% said it meant owning a few rooms in a house. Around 14% said they didn't understand shared ownership at all.

TML warned that this knowledge gap around shared ownership likely means there are potential buyers that may benefit from buying a property this way could be missing out through a lack of understanding.

Head of corporate accounts at TML, Louise Apollonio, commented: “High interest rates, property prices and rising costs have led to a situation where many are losing faith that they will ever be able to get onto the ladder.

“While evidently there are steps that the Government must take to help this group, there is also support and alternative routes to homeownership available that could make a huge difference to many first-time buyers.

“The first hurdle to get onto the ladder is raising a deposit, which is particularly difficult for those renting who are also dealing with steep rental price rises. However, that doesn't mean that they wouldn't be good candidates for owning a property. Shared ownership provides an opportunity for first-time buyers to get a step onto the ladder without the need for a huge deposit, allowing them to slowly work up to total ownership of the property.”

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