How to be a property winner: how to find the best shared-ownership flats in London

There are a lot more buyers than homes but smart first-timers can stay ahead of the game by following the advice of our property coach.
Be an early bird: get in early on the mammoth regeneration at Elephant and Castle in Zone 1, where one and two bedroom flats at Castilla in SE11, the latest new tower, go on sale next month - register at peabodysales.co.uk
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Ruth Bloomfield25 September 2017

One thing you have to know about shared ownership is that when flats go on the market they tend to sell out in the blink of an eye, particularly in popular locations.

This rush is due to the imbalance between the number of flats being built and the huge number of potential buyers.

Research by property consultant JLL reveals 16,000 shared-ownership homes are being built in London now — but that’s enough for only a fraction of the first-timers eager to buy.

Smart first-timers can help themselves by following these tips:

1. FIND OUT WHERE SHARED-OWNERSHIP FLATS ARE BEING BUILT BEFORE THEY GO ON SALE

Finding out about schemes before they go on sale so that you’re ready to pounce when they appear is half the battle.

Graham Phillips, marketing manager at Guinness Homes, suggests speaking to your local council.

“Most councils have something called an enabling team,” he says. “They will work within the planning and housing departments and they know about what is planned. You might get inside knowledge about what is coming up over the next few years from them.”

2. KEEP YOUR EYES PEELED FOR TELL-TALE SIGNS

Housing associations usually advertise the fact that they will be selling shared-ownership homes on the hoardings that surround sites during the build, says Lisa Ley, head of sales and marketing at Network Homes. “If you see anything which looks of interest then register with the housing association, which will contact you when homes go on sale.”

3. PLAY THE WAITING LIST

Martin Fillery, head of new homes at estate agents Currell — which sells shared-ownership homes for associations including the Southern Housing Group, Peabody, Hyde New Homes, Network Housing and A2 Dominion — says being on your local council’s housing waiting list can pay dividends in terms of upping your priority levels when homes are allocated.

Councils would rather see shared-ownership homes go to those on their waiting list because their names will then come off it, reducing numbers. “They have quite strict rules about who they will allow on their waiting lists,” warns Fillery. “And they will try to discourage you, telling you your chance of being housed is very slim, but they can’t actually stop you from going on the list if you qualify.”

Get ahead: getting on your council's housing waiting list can help you be accepted onto local SO schemes
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4. GET YOUR FINANCIAL DUCKS IN A ROW

Don’t see a potential sale fall through because you lack the right paperwork. Network Homes’ Lisa Ley suggests consulting an independent financial adviser who can tell you how much you are likely to be able to borrow, based on your income.

This tells you how much you are going to be able to spend on a share of a property, and also tells you how much deposit you will need. If you can borrow £150,000, for example, you are going to need £7,500 for a deposit. Factor in legal costs and stamp duty, too.

5. EARN EXTRA CREDIT

You should do a free credit ratings check to make sure your score is going to pass muster. “You might have a really small bad debt on a phone that you can easily sort out, or your score might be low because you don’t actually borrow,” says Ley. “You might need to apply for a credit card, use it, and pay it off every month to increase your score.”

6. CASH IS BACK

Banks routinely examine six months’ worth of your bank statements before deciding whether to lend you money. Currell’s Martin Fillery warns that there are certain red flags — payday loans, betting shops — that will make you look like a bad risk. Banks will also examine your spending habits. “If you are spending £80 a month on getting your hair done they won’t like that,” he says. “It is perhaps a time to live your life in cash.”

Cash is king: banks check your spending habits, so it may be time to return to cash for lifestyle spending
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7. MAKE SURE YOU'VE GOT BACK-UP

Ask friends and family to recommend a conveyancing solicitor and find out about costs in advance, as they vary substantially. A lawyer based outside London will tend to be cheaper than one based in the capital, and you can deal with them by phone and email.

8. DO THE LEGWORK

When you find out about a development have a look around the area to make sure you like it, and practise your commute. That way, if you like a property you can commit quickly.

Do a recce: take the time to stroll around areas you are interested in to see if they are right for you 
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9. DON'T DESPAIR

A lot of developments launch in phases. If you miss out on a launch the housing association will keep your details and contact you when the next tranche is coming up, giving you a second chance.

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