25,000 shared ownership homes under construction

Figures released exclusively to Inside Housing by the National Housing Group (NHG) show the organisation’s 80 members are set to vastly increase shared ownership delivery.

The research, compiled by JLL, shows its members have 25,000 homes under construction, which will likely come to market within the next 12 to 18 months. Over the past 30 years, shared ownership delivery has averaged around 6,000 homes per year.

The members have a combined ambition to lift delivery of new shared ownership units to 39,000 homes per year, although it is understood this is some way from being achieved.

It is understood the development activity represents a broad geographical spread of the country.

The most work is taking place in the high-value areas of London and the South East, but there are also substantial numbers of schemes under way in Bristol and the North West.

Inside Housing’s survey of the Top 50 Biggest Builders in the housing association sector last year revealed 6,911 completions of shared ownership units in 2015/16.

The NHG data includes figures from most large developing associations, but does have some omissions such as Home Group and Catalyst.

David Jubb, Greater London residential development director at JLL, said he believed the numbers represented around three-quarters of the shared ownership market.

“The NHG’s exclusive new data shows we could now be standing on the precipice of an explosion in supply of shared ownership units. And for the many aspiring homeowners feeling locked out of the system, it could not come sooner,” he said.

There are currently 200,000 shared owners in the UK, representing just 1% of the housing market.

Increasing the number of shared ownership homes has been a major priority for the government, which set out plans to deliver 135,000 properties through its grant programme.

While that number will likely reduce after the decision in the Autumn Statement to make grant funding available on a more flexible basis, it still requires a huge increase in shared ownership development to get close.

The NHG data also showed shared ownership buyers were aged 25 on average, compared with 33 for outright purchasers. It also showed the average income was £27,000 for a shared ownership buyer, compared with £43,000 for those buying outright. Inside Housing published the first detailed set of nationwide data on shared ownership from the NHG last year.