Why rent when you can buy with Shared Ownership?
The average asking rent for homes has hit new record highs this year forcing many renters to look for suitable alternatives. One alternative to consider is Shared Ownership that allows first-time buyers to own their home, often for less than they would when renting!
Shared Ownership - An alternative to rising London rental costs
The eye-watering average rent for a home in London has surged to £2,567, according to data from Rightmove. The continued mismatch between demand from tenants and supply from landlords has fuelled the sharp increases in rents. Landlords have been hit with rising costs and significant increases in mortgage rates.
As with London, affordability of renting has been at its worst for a decade across the whole of the UK, with official Office for National Statistics (ONS) figures highlighting rents rising at their fastest annual rate since comparable records began in 2016. The average rent paid in England, according to the ONS, is £960, a figure that a renter in London would struggle to find any available places at that price.
It's not all doom a gloom, however, with Shared Ownership providing a suitable and often more affordable way into home ownership.
Read our guide to Shared Ownership
What is Shared Ownership?
Shared Ownership helps first-time buyers get onto the property ladder in a more affordable way. You can usually buy an initial share of 25% to 75% of the value of a home, and you’ll need to take out a mortgage to pay for your share of the home’s purchase price.
You will then pay a subsidised rent on the share you don’t own, and there will also be a service charge to make up the monthly cost of buying through Shared Ownership which is often less when compared to renting privately.
By buying through Shared Ownership, you will need a smaller deposit compared to buying on the open market. It will also make you an owner-occupier in your home giving you the same responsibilities as a home owner.
Learn more about Shared OwnershipSearch Shared Ownership homes
Peabody New Homes have a wide selection of developments across London and the Home Counties available through Shared Ownership. Search today and find your route to home ownership and out of renting.
Featured Developments
City Angel
Islington
City Road, Islington, EC1V
from £115,000
New Mansion Square
Wandsworth
New Mansion Square, 140 Thessaly Rd, London, Wandsworth, SW8 4ED
from £141,250
The Auria
Kensington and Chelsea
The Auria, 334 Portobello Rd, London, Kensington and Chelsea, W105SA
from £610,000
Find out what our homeowners say
Buying a first home, getting married and preparing for the arrival of a baby are all busy life events. Raph and Jaye would know, after experiencing all these milestones simultaneously. They purchased a 25% share of a two-bedroom apartment at The Switch in Wimbledon, with a £42,600 deposit.
READ ALL THE STORIES
After spending years renting in London, wealth manager Aroma Khan purchased a 30% share of a three bedroom apartment in Queensbury, northwest London. She had no idea that, just two years later, she would be staircasing her way up to 100% ownership with a friend.
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Luca moved to London from Italy to work at a university. After a few years renting in London, Luca was able to purchase a 50% share of a bright two-bedroom, two-bathroom home through Shared Ownership at Arden, in Lewisham.
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Shared Ownership Pros and Cons
Are you considering Shared Ownership but not sure if it's right for you? See all the pros and cons to buying a home through Shared Ownership.
Shared Ownership vs renting
Not sure whether renting privately or buying a home through Shared Ownership is right for you? Read our complete guide as we compare the benefits of buying with Shared Ownership and renting privately.
Cost of buying a Shared Ownership home
You should be aware of all the costs associated with buying a home through Shared Ownership. Discover an example cost breakdown for buying a Shared Ownership home and know all the costs involved with buying.