From £91, 467: necessity is the mother of shared ownership

More Londoners are getting on the ladder by taking the part-buy, part-rent option, where the average share starts from just over £90,000.
Shared ownership is compelling in London because the entry price is so much lower than than buying outright. The average share bought in the capital is £91,467, equivalent to 37 per cent of the average property market value.
 
Also, the deposits required are much lower — often five per cent of the share being purchased, so possibly less than £5,000, as several lenders offer 95 per cent mortgages.
 
Apartments launched at Paddington House, part of a canalside regeneration scheme in Alperton, west London, can be bought with a deposit of £5,500 through housing association Network Living. A 40 per cent share of a one-bedroom home with a market value of £275,000 costs £110,000. Monthly costs are approximately £1,100, comprising a mortgage repayment of £593, rent of £378 and a service charge of £110.
 
Bigger flats are available, priced from £357,000, or £143,000 for a 40 per cent share. Call estate agent Currell on 020 7704 5618.

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£110,000: for a 40 per cent share of a one-bedroom flat at canalside Paddington House in Alperton
Alperton is a low-profile but well-connected part of the capital, roughly six miles from Charing Cross and on the Piccadilly line. A B&Q superstore is making way for the 441-home scheme, part of a Brent council masterplan to transform the neighbourhood into a residential haven, with a new school and shops, health centre, business premises, canalside café and community space. Completion is scheduled next year.
 
At Stag Lane, also in Brent borough, one-bedroom flats can be bought with a deposit of £4,375. This is a boutique scheme of 11 flats with allocated car parking. The minimum share is 35 per cent, with full prices from £250,000. Call estate agent GL Hearn on 0808 168 7900.
 
Shared ownership is often portrayed as a housing option for public sector key workers only, but white-collar Londoners aged between 25 and 34 and employed privately have become the mainstay of part-buy, part-rent schemes, according to Kush Rawal of Thames Valley Housing. “There’s now huge demand from what you might call ‘young professionals’, people working in finance and IT, retail, science and medicine, health and beauty, the media and charity sectors, also the Civil Service.”
 
Many buyers are content to remain as part-owners, rather than staircasing to full ownership, because it is an affordable way to live in a good-quality new home. Housing associations point out that shared-ownership buyers do not have to compromise in terms of location or quality as many of the homes available are at coveted, even posh, private developments, including fashionable riverside schemes and glamorous new skyscrapers.
 
This is a legacy of Ken Livingstone’s mayoralty, which aimed to de-stigmatise shared ownership. Private developers have to enter into a partnership with a housing association and often the shared-ownership homes are identical in design and specification to the open-market full-price ones. Notting Hill Housing Trust is one of the main providers, with flats at Battersea Reach and Riverside Quarter in Wandsworth, Brackenbury Square, Hammersmith and Oval Quarter, Stockwell. Call 020 8357 4444.

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Oval Quarter: Notting Hill Housing Trust has shared-ownership homes at the Stockwell development
The Bloom, bordering White City regeneration zone, has 170 flats in colourful, low-rise blocks overlooking five-acre Wormholt Park and nature reserve. Prices start at £156,250 for a 50 per cent share of one-bedroom flat. Two-bedroom flats start at £137,250 for a 30 per cent share.
 
The best way to register for shared-ownership homes across London is to sign up to the Government’s First Steps scheme. Visit firststepslondon.org.
 
Housing associations also offer “Help to Buy” deals. The Warehouse, Streatham, is a modern-design new-build scheme of 40 apartments priced from £312,500. Using a shared equity loan arranged through Network Living’s financial advisers, a minimum deposit of £15,625 is required. The minimum salary requirement is £54,000. Call Currell on 020 7704 5618.
 
‘I’ll start with half and buy the rest later’
Kirsty Duncan, 27, returned to London after working in high-priced Switzerland but was still dismayed by the capital’s soaring rents and property prices.

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Staircase to full ownership: Kirsty Duncan owns a 50 per cent share of her flat
Shared ownership was the only way to get on the ladder, and she opted for a new flat in Brixton, priced under £300,000 through Genesis housing association.
 
“I bought a 50 per cent share and plan to buy it outright in a couple of years or so,” she says. More than a third of shared ownership buyers go on to “staircase” to 100 per cent ownership, according to the National Housing Federation.

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