I think it was the American statesman Benjamin Franklin who said: “There are only two things certain in life: death and taxes.”

After the extraordinary events of the last 18 months or so, I’m almost tempted to add a third certainty to that list: house prices will always increase. Well, it looks as though they will for the next few years, at least.

According to Nationwide’s latest House Price Index, house prices have increased by 9.9% in the past year and the cost of an average property in the UK broke the £250,000 mark in October. In fact, the price of a typical home has increased by £30,728 since the pandemic struck in struck in March 2020.

That’s great news if you’re already a homeowner. It’s not such good news if you’re hoping to take your first step on the housing ladder and trying to save for a deposit.

Taking that first step has always been difficult, but the current state of the market means it’s particularly tough. And with the government’s Help to Buy scheme set to end in March 2023, it could soon be getting even tougher for those with smaller deposits.

If you have a customer who’s finding that their options are limited, did you know that shared ownership could offer an alternative solution?

Launched back in the 1970s, shared ownership allows first-time buyers (FTBs) and those who don’t own a home to get onto the property ladder as an owner occupier, offering them long-term stability without overstretching their budget.

With lower deposits accepted, the scheme offers first-time buyers the chance to find a place they can call home at an affordable price.

It works by giving them the chance to buy a share in a new build or resales property (between 10% and 75% of the value) and pay rent on the rest. Over time, they can choose to buy to more shares in their home, eventually ‘staircasing’ all the way to 100% ownership when they will no longer be required to pay any rent.

What’s more, for those clients servicing in the Armed Forces, the Forces Help to Buy scheme can be used in conjunction with shared ownership.

The problem many borrowers can face, particularly those with complex cases or less than perfect credit histories, is finding a lender with enough experience of shared ownership.

Specialist lenders such as Kent Reliance for Intermediaries understand the challenges first-time buyers face, and can offer the expertise, flexible criteria and relationships with housing associations that’s needed to support your clients’ needs.

With house prices predicted to rise for the next two years, raising a deposit looks likely to remain the main barrier for most prospective first-time buyers. Fortunately, for clients looking for a solution to help them take that all-important first step on the property ladder, shared ownership could help turn their home buying dreams into a reality.

Emily Machin, head of specialist finance, Kent Reliance for Intermediaries