Fears of a Credit Crunch are Failing to Deter would be First Time Buyers in Stone

Dozens of people desperate to join the property ladder queued to find out about shared ownership homes available at Fillybrooks off the A34. Three of the five homes on offer from Central Borders Housing Group were snapped up within hours after the showhome opening last week.

News of falling prices and fewer good mortgage deals available on the high street means that shared ownership is becoming an increasingly popular option. And with the average house price in Staffordshire hitting £228,353, and the average wage remaining at £19,089 spiralling costs are pricing out many local people.

“Shared ownership is becoming increasingly popular as residents look for options which allow them an affordable route into the property market. It is flexible and affordable and enables people to increase the share they own as their income grows. Otherwise, they might never be able to afford to own a home of their own,” said Sue Steadman, sales and marketing manager for Central Borders Housing Group.

“Through the Government-backed scheme, there are various mortgage providers willing to offer mortages for shared ownership schemes, and if the credit crunch hits this will become even more crucial for residents.”

The shared ownership deal means that, for example, a two-bedroom coach-house apartment, valued at £147,500, is being offered at a 40 per cent share, equating to £59,000, making it accessible to many more first time buyers struggling to get a foot on the property ladder.

Purchasers then pay rent on the remaining 60 per cent of the property and can increase the amount they own as their income grows. Larger shares can also be bought from the start if a buyer has the means.

All three townhouses are now under offer and there has been an overwhelming interest in the coach-house apartments after people queued to get a first look at the showhome.

Sue said: “With house prices still high and banks and building societies cutting back on their lending, it appears shared ownership schemes are coming into their own.

“We are already developing a number of other properties across the region for shared ownership and are anticipating a similar response to the one we saw in Stone.”

The three three-bedroom townhouses have an open market value starting at £167,000, meaning buyers had to find £66,800 for a 40 per cent share. They would then pay around £214 per month in rent and service charge to South Staffordshire Housing Association, which is managing the homes for Central Borders.

Typically, shared ownership properties are available only to people who could not otherwise afford to buy a property in the area and preference is given to buyers with strong local links.

The properties at The Fillybrooks were built by Miller Homes.

For more information on shared ownership homes, visit our Homes for Sale page.

(Released 29th April 2008.)