Subsidising mortgage rates for staircasing would significantly increase take-up

A reduction from 4.7% to around 3% could increase staircasing rates by up to five times, unlocking around £13 billion for housing associations to reinvest into new affordable housing over a five-year to ten-year period.  In July, the G15 Resident’s Group wrote to the Housing Minister with this proposal, highlighting that, not only would it benefit existing shared owners, but it would also help to address unmet housing need.   It is understood that the model would involve the government changing the rules on recycled capital grant for shared ownership, allowing housing associations to give some of the grant in their shared ownership properties to mortgage lenders.  This would allow them to reduce mortgage rates on staircasing to make it cheaper and more affordable for shared owners and unlock  equity for housing associations to invest in new affordable homes.

A reduction from 4.7% to around 3% could increase staircasing rates by up to five times, unlocking around £13 billion for housing associations to reinvest into new affordable housing over a five-year to ten-year period.  In July, the G15 Resident’s Group wrote to the Housing Minister with this proposal, highlighting that, not only would it benefit existing shared owners, but it would also help to address unmet housing need.

A reduction from 4.7% to around 3% could increase staircasing rates by up to five times, unlocking around £13 billion for housing associations to reinvest into new affordable housing over a five-year to ten-year period.  In July, the G15 Resident’s Group wrote to the Housing Minister with this proposal, highlighting that, not only would it benefit existing shared owners, but it would also help to address unmet housing need.