Blimey! What on earth is going on? Notting Hill Housing Trust not really living up to it's radical past itself being established by Shelter founder and housing activist Bruce Kenrick to alleviate poverty in the Notting Hill area. The Trust is digging in locally in Southwark being the developer for the second regeneration of the demolished towers of Elmington Estate in SE5! Will that site see more of the same?
It is plainly obvious that shared ownership is, by and large, a scam. When it is Government subsidised it is a scam against the taxpayer - shuffling the deck and subsidising developer profits without delivering any extra housing supply, and when it is not Government subsidised, as here, it is a scam against the buyer, trapping in the sort of people who would in the past have got a 125% mortgage, instead letting them believe that their affordable mortgage is fine, neglecting that they are still making 75% of a rental payment on top.
It'd be nigh impossible to enter a shared ownership arrangement without realising you were going to pay rent too - that's the whole idea.
The various versions of % policys don't work when the planning requirement is not backed up by cash and proper consideration of what properties and locations are right for these schemes.
How did this come to be built with unfunded shared ownership units? It's not unlikely that it might suit someone, if you can't access a deposit but have high earning for instance, but without knowing the rental rates and likely service charges you can't even estimate the final cost.
There is a difference between knowing something as a hypothetical fact, and appreciating its implications. People who took out 125% mortgages "knew" they were taking out a mortgage for 125% of the value of their home, too...
As for how we have ended up with 'unfunded' shared ownership - the Government doesn't want to subsidise it any more (and in fairness why should they subsidise ownership - though they're happy to ask Councils to do so by massively increasing the discount on Right to Buy), the Mayor doesn't want to force 'affordability' into developments, and the developers are increasingly using the housing downturn, even though it doesn't seem much in evidence in London, to argue that it is financially unviable for them to use the profits from the posh flats to sell the 'affordable' ones at below cost.
I've lived in a shared ownership property since 2007 and whilst I'm not in a position to buy the place outright or staircase at the moment, because of the way rents have gone since then my outgoings (mortgage, rent, service charge) are now significantly less than I'd be paying to rent privately here and I have the advantage of a secure tenure. It is wrong to label shared ownership as an outright scam against anyone, when done properly.
If you bought in 2007 the developer/housing association will have received a £60k grant from the Government on top of whatever you paid. I did not say that the person scammed was always the buyer/tenant...