Shared Ownership: A Lower Deposit Route to Homeownership
Buying your first home can feel like a challenge, particularly when it comes to saving for a deposit. For many aspiring homeowners, building up a large deposit is one of the biggest barriers to getting onto the property ladder.
That’s where Shared Ownership could help.
By purchasing a share of a property rather than the full market value, Shared Ownership can reduce the amount of deposit required, helping eligible buyers take their first step towards homeownership sooner.
How does Shared Ownership work?
Shared Ownership allows buyers to purchase a share of a home, usually between 25% and 75%, and pay a subsidised rent on the remaining share.
Because your mortgage and deposit are based on the share you are buying rather than the property’s full market value, the upfront costs can often be significantly lower than purchasing outright.
Over time, homeowners can increase their ownership through a process known as staircasing, giving them the opportunity to purchase additional shares and potentially own their home outright in the future.
Learn more about Shared Ownership
Why a lower deposit makes a difference
Saving for a deposit can take years, especially when balancing rent, bills and everyday living costs.
Shared Ownership can help reduce this hurdle by lowering the initial financial commitment required to buy a home. This means buyers may be able to start their homeownership journey earlier while benefiting from the security and stability that comes with owning a home.
For many first-time buyers, Shared Ownership provides a practical alternative to renting and a more affordable route onto the property ladder.
The Power of Lower Deposits: Ester’s Success Story
Shared Ownership has helped thousands of buyers find a home of their own.
Ester purchased her home through Shared Ownership and found it offered a more achievable route to homeownership than buying outright.
“Buying outright and having to save up for a deposit on a traditional mortgage would have taken years and years. I saved £8,250 for the deposit, for 30% equity in my home, which cost £275,000. All of a sudden, having to save for years on end turned into something much more achievable. Buying through shared ownership has made home ownership more affordable. If I’d bought outright I’d have had to save for a much larger deposit”
What are the benefits of Shared Ownership?
Lower deposit requirements
Because your deposit is based on the share you are purchasing rather than the full market value of the property, the amount you need to save may be significantly lower than buying outright.
A more affordable route into homeownership
For many buyers, the combined monthly cost of a mortgage and subsidised rent can provide a more accessible route to homeownership than saving for a larger deposit and mortgage on the open market.
The opportunity to increase ownership over time
Through staircasing, homeowners can buy additional shares in their property when their finances allow, potentially progressing to full ownership in the future.
A brand-new home
Many Shared Ownership homes are newly built and come with contemporary layouts, modern kitchens, energy-efficient features and lower maintenance requirements than some older properties.
Take your first step towards homeownership
If you’re exploring ways to buy your first home, Shared Ownership could help make your move more achievable.
With a lower initial financial commitment, the opportunity to build equity over time and a range of homes available across London and the South East, Shared Ownership continues to offer an accessible route onto the property ladder.
