Shared ownership buyers 'not aware of property cost'

First-time buyers taking advantage of shared ownership deals could be paying more than they should for their properties, according to Guardian Money.

The newspaper claims that many housing associations offering new-build part-rent/part-buy properties are buying the homes at a discounted rate from developers, but not passing on the discount to homebuyers.

Shared ownership schemes allow buyers who are more financially stretched to buy a percentage of a new property and rent the rest, meaning they get a foot on the property ladder.

However, while one of the chief attractions of the deals are the cheaper rent rates, which are charged as a percentage of the equity which is still owned by the housing association, the Guardian claims many housing associations are able to offer these as they are not offering the properties at the cheapest rate.

Ian Perry, housing spokesman for the Royal Institution of Chartered Surveyor, explained: "Many buyers of such properties will be unaware that the association may be buying the property from the developer at a discount - typically 75 per cent of the market value paid in full by the buyer."

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