Connells Group has revealed a significant 39% increase in first-time buyer registrations in Q3, compared to the same quarter last year, underlining the growing desire for homeownership, despite affordability constraints.
The group has published its latest shared ownership data, which highlights growing demand from first-time buyers, as well as the clear affordability benefits: the national average monthly payment for a 25% shared ownership share is £691, 36% less than the average traditional mortgage payment of £1,080.
The regional picture shows the best opportunities for shared ownership are in the North East, where all five of the most affordable Local Authorities are located. Meanwhile, the five least affordable Local Authorities are in London.
In Hartlepool, the leading Local Authority for affordability, shared ownership owners would spend on average 16% of their salary on their monthly payment, compared with 74% in Kensington & Chelsea, the least affordable Local Authority.
Roy Hind, Connells Group’s affordable housing director, said: "Our data shows the demand to step onto the property ladder is clearly there, but as we well know, affordability has become a major blocker for first-time buyers wanting to purchase their first home. That’s why shared ownership is a vital solution for aspiring homeowners in today’s market, and one which needs to be prioritised across the housing sector if we really want to help buyers overcome cost barriers and access homeownership.
“While this data is really encouraging, the supply of new homes remains a significant challenge, with recent NHBC data showing new home starts are 17% below the ten-year average. Shared ownership is a vital solution to the affordability gap, and therefore, to truly unlock homeownership for more people, we need to explore innovative ways to boost housing supply and ensure these much needed options remain available.”
