Shared property schemes ‘being held back’ by lenders

There has been high demand for shared ownership property schemes but the market is being held back by a lack of bank finance, it has been claimed.

A representative from the National Housing Federation (NHF) noted that many people are looking to participate in the programmes in order to get onto the ladder, but that some have encountered debt management issues in accessing funding.

“The problem has been that a lot of the lenders view shared ownership properties as a higher risk,” he explained.

The spokesperson revealed that the NHF has been lobbying organisations such as Northern Rock in an attempt to stop them viewing shared homes as high risk.

He urged lenders to treat people in the schemes in the same way as they would for “any other borrower” and offer them competitive rates.

Communities and Local Government recently set up the HomeBuy Direct initiative, which aims to use shared equity programmes to help first-time buyers access affordable housing.

By Jamie Price