Getting on the property ladder can feel like an uphill battle. House prices keep climbing, and saving for a deposit while paying rent feels almost impossible. Could Shared Ownership be the answer? It’s a scheme that lets you buy a share of a property and rent the rest, but is it really a better deal than renting in the long run?
This article pulls insights from a recent independent report, “Taking the Longer View” commissioned by Leeds Building Society in 2025 (Pannell and Williams, 2025). The report, authored by Bob Pannell and Peter Williams, compares the costs and benefits of Shared Ownership against private renting in England. It’s a solid piece of research that uses both national data and real-world lending figures to give a clear picture.
Guinness Homes is proud to provide award-winning Shared Ownership and private sale homes in areas you want to live.
What is the Shared Ownership Scheme?
Shared Ownership is a government-backed scheme aimed at helping people buy a home who might not be able to afford a mortgage on their own. You buy a share of a property (usually between 25% and 75%) and pay rent to a housing association on the bit you don’t own. This means you need a smaller deposit and mortgage than if you were buying the whole place outright.
What are the findings?
The big question is, of course, about the money. Here’s what the report found:
More Affordable in Many Places: After 10 years, Shared Ownership works out cheaper than private renting in a whopping 93% of local council areas in England (Pannell and Williams, 2025).
Even Better in High-Rent Areas: Shared Ownership seems to make most sense in these locations. After 10 years, Shared Ownership is affordable in around 98% of these locations! (Pannell and Williams, 2025).
Shared Ownership and Equity
Monthly affordability is important, but the real advantage of Shared Ownership comes from building up equity in your home. Equity is the difference between what your home is worth and how much you still owe on your mortgage. When you rent, you don’t build up any equity – you’re just paying someone else’s mortgage.
The report estimates that after 10 years, shared owners are, on average, £29,000 better off than private renters due to accumulated equity. If they’re in London this peaks at £42,000 (Pannell and Williams, 2025).
Things to know about Shared Ownership
- Service Charges: You’ll usually have to pay service charges to cover the cost of maintaining communal areas and the building itself.
- Rent Increases: The rent you pay on the share you don’t own may increase each year.
- “Staircasing”: If you want to buy a bigger share of your home in the future, you’ll have to go through a process called “staircasing,” which involves legal fees and a valuation.
- Leasehold Properties: Shared Ownership properties are generally leasehold, meaning you don’t own the land your property sits on.
Is Shared Ownership right for you?
A Shared Ownership home offers some compelling benefits over private renting. It allows first time buyers to get onto the property ladder, build equity over time, and potentially save money in the long run.
The report concludes that “the majority of shared owners will be materially better off by making this choice” (Pannell and Williams, 2025).
Whether or not it’s right for you depends on your individual circumstances and preferences. Research thoroughly, seek financial advice, and weigh all potential costs and benefits before making a decision.
What to do next
- View Developments: Have a look at properties offered through the Shared Ownership scheme.
- Speak to a Mortgage Advisor: Find out how much you could borrow and what your monthly payments would be.
- Ask Questions: Don’t be afraid to ask plenty of questions about Shared Ownership and get all the information you need. Get in touch with our sales team if you have any questions about Shared Ownership.
References
- Pannell, B., and Williams, P. (2025). Taking the Longer View: Shared ownership, costs and opportunities – an independent assessment. Report for Leeds Building Society.
Disclaimer: This information is intended for guidance only and does not constitute financial advice. Always seek professional financial advice before making any decisions.