5 reasons for why to choose Shared Ownership instead of private renting

Reasons 1 - 3

1 - COST

Your shared ownership rent starts off lower than the equivalent rent in the private market, you save money. It also increases at a slower rate than the private rental market, thanks to strictly regulated annual increases overseen by the Regulator of Social Housing. This all means you have long-term security and no uncontrolled increase in your rent or service charge.

​An independent report commissioned by the Leeds Building Society found that it was more affordable to be a shared owner than privately rent in 77% of all 294 local authorities in the country within the first year of living there - and this rose to 93% after 10 years. This shows the power of shared ownership's controlled increases against the unregulated private market.

2 - CHOICE

Shared Ownership has been around as a government scheme for over 40 years and new Shared Ownership homes are coming to the market all the time. This means that there are new and resale Shared Ownership flats and houses of all sizes and types all over the country, but how do you find all these homes?

• If you go to the major property portals and add ‘buying schemes’ to your filters you will get shared ownership homes in your results.
• Or you can go to a dedicated shared ownership portal like www.sharetobuy.co.uk and see what is available in your area
• If you know who your local Housing Association is that does Shared Ownership you can go directly to their website like www.sagehomes.co.uk/sales
• Google ‘shared ownership homes in my location’ will bring in results from portals, estate agents and housing providers

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3 - FREEDOM & SECURITY

As a regulated provider of housing your Shared Ownership landlord will not be able to decide to move you out so they can put up the rent, move a family member in or sell the home –giving you long term security.

No more private landlord telling you that you can’t decorate, put up pictures or make where you live feel like home.

If affording your home is difficult and you have a spare room you could make the most of it. Most Shared Ownership leases do not allow you to sub-let your home. However, lodgers are often allowed, as long as you have sought permission.

You are often allowed pets in your Shared Ownership home, you just need to check with us and let us know what your pet is.

Reasons 4&5

4 - FUTURE PROOFING YOUR LIFE

You can buy more shares of your home (called ‘staircasing’), up to 100% ownership.

Staircasing is a great next step in your homeownership journey as you’ll reduce the amount of rent you pay. This means if you decide to sell up, you’ll benefit even more from any increase in your home’s value. If there's is a drop in your home’s value, this will also be reflected in your share’s value, however by staircasing to a larger share, you’ll get a correspondingly larger percentage of the sale.

If you staircase to 100% you may never pay rent again in your life and in many cases you will also become the Freeholder of your property.

5 - MOVING ON

If you decide to sell up you’ll benefit from any growth in your home’s value, as your share’s value increases in line with your home’s value.

For example, if you bought 25% of your home when the total value was £400,000, your 25% share was worth £100,000. If you sell your property later for £500,000, your 25% share will be worth £125,000.

This means you could end up with more money for the next rung on your journey up the property ladder. (Of course, if there is a drop in your home’s value, this will also be reflected in your share’s value).

This scheme means the home that meets your needs is affordable and you can increase how much you own over time, right up to 100% ownership.

This isn’t just a place to live, it’s your home – thanks to shared ownership.