Middle income Londoners are being priced out of the shared ownership property market.
A new report by the London Assembly exposes the myth of affordability in the shared ownership model with one scheme in Shoreditch offering a minimum income requirement of £65,617, just £383 shy of the maximum income threshold of £66,000 to qualify for shared ownership housing.
The First Steps On The Ladder report found that half of households that purchased shared ownership homes in 2013-14 had a household income of £39,200 or more although the scheme was designed to cater for those earning between £11,000 and £39,200.
Deputy chairman of the housing committee Darren Johnson said: “Many renting Londoners aspire to own their own home, but soaring house prices are making this harder.
“Nurses and teachers are the kinds of essential workers shared ownership was designed to help – but increasingly people in that income bracket are finding themselves priced out.
“Even current shared owners on comfortable incomes are finding it a huge slog to buy extra shares in their home, as prices rocket further and hefty service charges raid their wallets.”
The report recommends that the Mayor considers how to retain the long-term affordability of shared ownership homes and develops alternative models of affordable ownership – such as Community Land Trusts.