Muslims in the South-east are being denied the chance to get on the property ladder because of the Housing Corporation's shared ownership policy.
That was the claim from the Network of Muslim Housing Professionals at its inaugural meeting last Wednesday.

It said the problem continued despite the corporation's extensive involvement with the homeownership taskforce, which has called for the government to look into making homeownership easier for Muslims.

The group said the requirement that customers of shared-ownership schemes funded by the corporation buy 25% of the home stopped many Muslims in high-value areas from taking advantage.

This is because Islam forbids the payment of interest on borrowed money, making traditional mortgages inaccessible. There are special Islamic mortgages, but these are not legally compatible with shared-ownership schemes.

The network said the minimum stake should be lowered to a level that could realistically be saved or borrowed from family or friends.

Fiona Cruickshank, director of investment and regeneration policy at the corporation and a member of the taskforce said: "We looked at lowering the threshold but felt that if someone couldn't afford 25%, then was this a person for whom homeownership was sustainable?"

Khalil Ur-Rahman, the network's lead member, said: "The corporation has missed the point completely."

Source

Housing Today