Peter Albert | 29/05/2011 10:59 pm
“its analysis of applicants unsuccessful at purchasing Shared Ownership units flagged up this was due to the removal of the 100% mortgage product”
If the customer-base cannot afford only a part-buy SO other than via 100% mortgage product then this fact alone should direct the HA to concentrate on whom they should be supporting. i.e. those at the very bottom whom ultimately would settle for secure tenancy, fair rented accommodation or a viable home purchase scheme. The recent home ownership products and now endorsed by this Government i.e. SO that will never be fully owned, overly expensive and have not proved viable for many including RSLs who have hung on to the un-sold units and have stated a Rent to Buy conversion rate of 1% in some cases.
Is the motive that RSLs now realise that by attaining 80% rents – they practically have the same income as they would via Rent to Buy / similar but retain the property – i.e. double whammy for them (they only wanted sales in first place to generate income for further development not rental units). If this is the case, likely to be looking for a different tenant type i.e. not those in potential buying position but those in HB system / borderline hence notice to quits……………