Living in a London flatshare is becoming an increasingly common practice, as property prices remain out of reach for most people. However, there is some good news for wannabe first-time buyers.
Shared ownership schemes such as the New Build HomeBuy programme enable buyers to purchase part of the property – usually about 30 per cent - and pay reduced rent on the rest. Graeme Moran, the director of Metropolitan Home Ownership (MHO), the agent responsible for the scheme says "It is a great way to get a foot on the ladder and will reduce exposure to interest rates."
Unlike many flatshare arrangements in London, the rent due through a shared ownership scheme is capped at 3% of the value of the unsold equity in the first year. It is also measured by inflation rather than interest rates.
However, a shared ownership scheme can work out more expensive than a shared house Figures from property data company Hometrack indicate that a homeowner would pay about £236 a week for a mortgage on a two-bedroom flat in the borough of Enfield. A private tenant would only pay £219 a week in a similar property.
