The Intermediary – July 2026 - Flipbook - Page 18
FIRST-TIME BUYERS
In focus
SHARED
OWNERSHIP:
The natural evolution
for first-time buyers?
G
eing on the property
ladder remains a
significant challenge
for first-time buyers
(FTBs), driven by a
combination of house
price inflation, the scale of deposit
required and the support currently
available to help bridge that gap.
As a result, many are delaying
homeownership, widening their
property search to more affordable
areas, or relying on the ‘Bank of
Mum and Dad’ to make their first
purchase possible.
While Government support exists,
affordability remains constrained by
broader market factors, including
housing supply and the wider costs
associated with buying a home.
Existing schemes can help bridge the
gap for some first-time buyers, but on
their own, they cannot fully address
today’s affordability challenges.
Help to Buy
One of the most notable first-time
buyer schemes, Help to Buy, closed in
2023, but still sparks debate within
the industry as to whether it should be
relaunched.
Recent research from the Institute
for Fiscal Studies (IFS) revealed
that the scheme did lile to fix the
structural issues. The top 10% of
earners benefited the most because it
allowed them to build wealth more
quickly, leading them to buy earlier
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The Intermediary | July 2026
or more expensive properties. This,
in turn, increased prices and lowered
supply, despite the scheme’s original
purpose to do the exact opposite.
While Help to Buy had its
shortcomings, its closure le a gap in
the market. The experience of Help
to Buy also highlights the importance
of ensuring future affordability
initiatives support buyers without
unintentionally adding further
pressure to house prices.
Government support
In the meantime, prospective
homeowners have several
Government-backed routes into
homeownership, each with different
strengths and trade-offs.
The First Homes Scheme offers
eligible buyers a discount on selected
new-build properties, appealing to
those who want to own outright from
day one, although the choice of homes
is limited.
Shared Ownership takes a different
approach. Buyers purchase an initial
share of a property, usually between
10% and 75%, while paying subsidised
rent on the remainder, with the option
to increase their ownership over time
through ‘staircasing’.
Despite its growing popularity,
Shared Ownership can oen be
misunderstood. Many still view it as a
scheme solely for first-time buyers or
associate it with social housing, when
it can also provide an affordable route
for home movers facing affordability
pressures, such as those needing a
larger home following a change in
family circumstances.
Buyers should, however, be aware
of the additional costs involved,
including rent on the remaining
share, service charges and leasehold
costs, making it a more complex
option than a traditional purchase.
The Mortgage Guarantee Scheme,
meanwhile, enables buyers to
purchase with deposits as low as 5%,
helping those who struggle to save a
larger deposit. However, borrowers
still need to meet affordability
requirements, and higher loan-tovalue (LTV) lending can result in
higher borrowing costs over the
longer term.
Affordable and on-the-rise
On top of Shared Ownership’s
unique structure, the process is
designed to benefit buyers with lower
incomes more than many other
Government schemes. Upfront costs
are significantly lower, because buyers
purchase only a share of the property
rather than its full value, and monthly
housing costs can also compare
favourably with private renting.
Shared Ownership has become
an increasingly popular option.
As affordability pressures have
intensified, more buyers are becoming
willing to consider alternative routes
into homeownership rather than
