More lending is needed to convert the public's interest in shared ownership schemes into sales, according to one housing group.

While there has been a high demand for affordable homes, such as those bought under HomeBuy Direct, the National Housing Federation (NHF) says banks have been reluctant to offer mortgages for "higher risk" properties.

Sentinel Housing Association reported at the end of last month that enquiries about shared ownership homes had nearly doubled in the first quarter of 2009.

However, figures from the British Bankers' Association show that just 26,097 mortgages were approved in March – even fewer than in the previous month.

A spokesperson for the NHF said the group has been lobbying banks such as Northern Rock to take the lead and treat shared ownership customers like any other borrower.

"Until that opens up more and it is made easier for people to buy these homes – which are very much in demand – then there may be some time to go until we see a lot of these properties shifting," he added.

Source: Direct News 5/5/09