Shared Home ownership... A sustainable approach towards Home ownership

Home ownership is one of the major challenges in today’s world of globalization. The new remedy in this regard has been introduced by developed countries is the shared home equity. The increasing number of people in the city centers is making situation tense and difficult with each passing day under the clouds of globalization. The cities which have already become urbanized centers are also influencing the connecting areas to get this fever of urbanization. The consequences of which include shortage of houses and so is the home ownership is getting affected badly. The less the number of houses, the fewer will be the home owners.

Reducing opportunities for Home Ownership

The inflation of land prices and rising figure of population are reducing opportunities for gaining home ownership which leads to social and economic inequity. This inequity is, for sure, undesirable by any country. In developed countries like United Kingdom, according to National Housing Federation statistics (NHF) by 2020 year, the average price of a house will climb to £331,387 and the price will become even higher in premises of London city up to £650,000. In addition to this, the report reveals that with such predicted increase in house price, it is expected that future generations may not able to own houses and forced to live on rental housing.

 Shared Home Ownership

The favorable choice for housing services other than renting and full ownership is the shared home ownership. The foundation is to have mutual possession by purchasing particular percentage of home and then paying the balance amount in form of rent. This option is quite suitable for people with low income category, who wish to acquire their own home but cannot make it through traditional methods of house buying.

The idea of shared ownership in case of housing has become trendy because a considerable proportion of the population in many parts of world is unable to afford market housing. Shared ownership offers an occupancy that is affordable and reasonable, as compared to full ownership, for those who have low income earnings and still providing sole right of possession. 

Shared Home Equity

Shared Equity schemes are closely related with shared home ownership phenomenon. As equity means the justice so the general definition is to provide equal opportunities for home buying on shared basis. It doesn’t involve the ownership factor in it. It is all about having justified accessibility of all households to buy homes.It has been observed over period of time that home occupancy facilities have not been equally available to all income groups. The biased approach in selling and financing houses in private market and prejudiced regulations in most of local and federal home ownership programs kept away the low income groups of families from entering circle of purchasing homes. Such social inequity is undesirable for consistent urban growth of cities.

Shared Home ownership & Equity in United Kingdom (UK) and United States (US)

The policies of Shared Ownership (SO) and shared Equity (SE) have been consistent element of United Kingdom housing planning for the last three decades. The origin of these products dates back into 1970s to deal with affordability issues of housing when inflation became very fast and people who were formerly capable of purchasing home over their working life period excluded by high expenditure in early years of conventional mortgage. The distinguishing feature of low cost housing policy in the United States in the near past has been focused on endorsing home ownership as public entity and on enhancing the status of home holders in the midst of households with low income levels nationwide. This most probably based on the fresh boost in the pace of home ownership, reaching up to percentage of 69 in 2005 from 65 percent in 1995, which seems to difficult to maintain 

For this reason, a range of planning schemes and strategic framework has been proposed, which includes Capital Subsidies, down payments and closing cost assistance, and never ending collection of ingenious mortgage tools to offer amendable charges, minor down payments, long lasting tenures and others value- added methods for providing instant and speedy access to housing market at the stake of upcoming threat and uncertainty. Shared Equity Homeownership is generic term used in different states of America under label of limited equity housing, non-speculative homeownership, permanently affordable homeownership, third sector housing, Homes for Good (Massachusetts reasonably priced housing), Forever Housing (Connecticut) and perpetually affordable housing (Burling, VT Community land trust houses).