Milton Keynes and the Shared Ownership Revolution: Redefining Homeownership

This is a collaborative post.

Milton Keynes is one of the fastest-growing areas in the UK. With its central location, business opportunities, and cultural attractions, more and more people are flocking to live in this new city. However, rising housing prices have put homeownership out of reach for many. This is where shared ownership comes in – providing an affordable way for people to get onto the property ladder.

What is Shared Ownership?

Shared ownership allows you to buy a share of a property (between 25% and 75% of the home’s value) and pay rent on the remaining share. Unlike traditional home purchases, you’ll need a much smaller deposit and mortgage to buy your initial share.

Over time, you can purchase bigger shares in a process known as “staircasing”. Eventually, you may own your home outright! Homeownership is attainable for first-time buyers who can’t afford to purchase 100% of a home immediately.

Shared ownership has grown rapidly over the past decade. Over 200,000 shared ownership homes are now in England, with thousands more being built each year. As house prices race ahead of wages, this innovative model allows more people to achieve their dream of homeownership.

The Current State of Milton Keynes’ Housing Market

The population of Milton Keynes is expected to grow by 20% by 2026. As a result, there is a huge demand for housing. House prices in Milton Keynes have risen 9.5% this year – significantly higher than the UK average.

• The average home now costs £302,000 – unaffordable for many first-time buyers.
• There is a severe shortage of affordable and social housing in the area. Twelve thousand people are on council house waiting lists.

This imbalance between supply and demand has made buying a home very difficult, especially for younger generations.

Barriers Facing First-Time Buyers in Milton Keynes

• High asking prices require large deposits that are out of reach
• Strict mortgage lending rules make it harder to secure financing
• Lack of small “starter” homes – newer properties trend larger
• Strong competition from buyers relocating from London

With rising rents and living costs, buying a home is seen as the only way to financial stability. Shared ownership provides a lifeline for those struggling to get on the ladder.

Shared Ownership Growth and Development in Milton Keynes

In recent years, MK Council has partnered with housing associations to build thousands of shared-ownership homes across the city to help alleviate the housing crisis.

• Over 2,300 shared ownership homes have been built since 2016/17
• A further 1,200 shared ownership homes are now in development, with more planned each year
• Popular developments are in Wolverton, Bletchley, Fenny Lock and Oxley Park

This surge of new affordable housing aims to meet rising demand from aspiring buyers.

Key Benefits Driving Shared Ownership Growth

• Cheaper deposits – minimum share purchases start from 25%
• Smaller mortgages required to buy initial share
• Staircasing allows buyers to slowly buy greater shares
• Priority access for eligible first-time buyers
• New energy-efficient homes with lower utility bills

As an innovative housing model, shared ownership expands options for buyers. Along with MK Council’s £100 million investment into social housing across Milton Keynes, shared ownership is helping turn “generation rent” into “generation buy”.

Who is Eligible for Shared Ownership?

Shared ownership programs are targeted towards groups struggling to buy their first home. Priority is given to:

• First-time buyers who fail mortgage affordability checks
• Local residents who qualify as essential workers – nurses, police etc
• Military veterans and reservists with low savings
• Households already renting from a housing association

You must pass income eligibility checks based on your household size and the region you wish to buy in. The maximum household income cap is £80,000 outside London and £90,000 in London.

Additionally, most programs require buyers to:

• Have permanent employment status
• Pass credit checks proving no serious missed payments
• Be ready to cover all other homeowner responsibilities – utilities, council tax, maintenance etc

Eligibility criteria ensure shared ownership targets vulnerable groups most needing assistance accessing the property ladder.

How Much Could I Save with Shared Ownership?

The most immediate benefit of shared ownership is needing a much smaller deposit and mortgage – often 50% cheaper than buying the same property outright!

For illustration, let’s compare buying a £250,000 home through two different routes:

	Shared Ownership	100% Ownership
Initial 25% Share Purchase:	£62,500
Remaining 75% Value	£187,500	£250,000
Deposit Required (10%)	£6,250	£25,000
Mortgage Required	£56,250	£225,000
Total Savings	£162,750 cheaper!

Table: Buying a £250k home through Shared Ownership vs 100% Ownership

As you can see, buying just a 25% share slashes the deposit & mortgage required by 75%! This equates to over £160k in immediate savings.

Additionally, your rent payments on the unsold share are capped based on 2.75% of its value – meaning it may cost less than private renting.

As your housing needs grow, you retain the option to staircase up to full ownership, or sell your share. Shared ownership provides a flexible way to get on the ladder and start building equity.

Finding Your Perfect Shared Ownership Home

With cranes dotting the skyline, the options for shared ownership in Milton Keynes continue to grow. You can explore available listings across new developments by visiting the Keaze website and the page dedicated to shared ownership in Milton Keynes you are sure to find a property that suits your needs.

Key New Developments Offering Shared Ownership by Keaze:

1. Apartment at 1 Manx Road:
   • Location: 1 Manx Road, Milton Keynes.
   • Property Details: 1 bedroom, 1 bathroom.
   • Financials: Minimum deposit of £4,725, 45% share from £94,500, full price £210,000.
2. Saxon Reach SO:
   • Location: Keightley Gate, Milton Keynes.
   • Property Details: 1 – 2 bedrooms, 1 bathroom.
   • Financials: Minimum deposit of £4,350, 40% share from £87,000, full price £217,500.
3. Rowditch Furlong:
   • Location: Rowditch Furlong Redhouse Park.
   • Property Details: 2 bedrooms, 1 bathroom.
   • Financials: Minimum deposit of £11,750, 50% share from £117,500, full price £235,000.
4. Pomander Crescent (Ref: 1242):
   • Location: Pomander Crescent, Milton Keynes.
   • Property Details: 2 bedrooms, 1 bathroom.
   • Financials: Minimum deposit of £6,250, 50% share from £125,000, full price £250,000.
5. St Lawrence Fields – Heylo Shared Ownership:
   • Location: Oakworth Avenue, Milton Keynes.
   • Property Details: 2 bedrooms, 1 bathroom.
   • Financials: Minimum deposit of £4,550, 35% share from £91,000, full price £260,000.
6. 1002 Willow Lake:
   • Location: 53, Newton Leys.
   • Property Details: 3 bedrooms, 1 bathroom.
   • Financials: Minimum deposit of £8,875, 50% share from £177,500, full price £355,000.

These properties represent a diverse range of options in terms of size, location, and financial requirements, reflecting the varied needs and budgets of potential homeowners in Milton Keynes.

Finding Your Perfect Shared Ownership Home

The Keaze website makes it easy to filter listings by:

• Location within Milton Keynes
• Property type – house, apartment, maisonette
• Number of bedrooms
• Share percentage available
• Maximum share purchase price
• Special requirements – parking, garden etc

You can save favourite listings and personalised alerts will notify you when matching homes become available.

Their partnerships with Housing Associations across Milton Keynes ensure access to the broadest range of shared ownership opportunities. Whether you want a modern city centre flat or a family house with a garden, they can help you find and apply for your perfect shared-ownership home.

Shared Ownership Offers a Vital Route to Home Ownership

Buying an affordable home in Milton Keynes once seemed out of reach for many. Yet the rise of shared ownership is bringing the dream of home ownership back into focus for buyers struggling with rising property prices.

With deposits from just £6,250, shared ownership shields buyers from brutal upfront costs. By allowing people to buy greater property shares over time slowly, it provides a fairer, more accessible path onto the housing ladder.

Through the combined efforts of Milton Keynes Council and partner Housing Associations, over 3,500 high-quality shared ownership homes will be built across the city by 2026. Shared ownership empowers a new generation of buyers across Milton Keynes to become homeowners.

Unlocking cheaper access to home ownership helps create more financially resilient residents while giving young people the stability to put down roots in the community. As Milton Keynes continues its ambitious expansion, shared ownership will play a vital role in shaping the city’s future landscape.

Summary

As one of the fastest-growing areas in the UK, Milton Keynes has seen rising housing prices that have put full homeownership out of reach for many, especially first-time buyers. 

Shared ownership allows people to purchase 25-75% share of a home, while paying affordable rent on the remainder, enabling cheaper access to homeownership. Over 2,300 shared ownership homes have already been built in Milton Keynes since 2016, with plans for 1,200 more, aiming to meet rising demand. 

Shared ownership slashes required deposits and mortgages by as much as 75% compared to buying outright. It targets key groups struggling with affordability like first-time buyers, local essential workers, and veterans. Income eligibility caps ensure it assists those most in need.

Overall, the growth of shared ownership schemes in Milton Keynes is empowering a new generation of buyers to get on the property ladder. By unlocking cheaper access to homeownership, it helps more residents achieve financial security while shaping the city’s future as it continues expanding.