Buying your first home is a huge expense that most people spend several pain-staking years to save up for.
But what if there was a way to speed up the process, without sacrificing the quality of your home? Welcome to Shared Ownership, an affordable home ownership scheme that allows you to buy a share of your dream home, while you rent the remainder.
Wondering how Shared Ownership can help you save some extra cash? Here are the key ways that Shared Ownership can ease the financial burden of buying a home:
A smaller deposit with Shared Ownership
Let’s start with the biggest money-saver. With Shared Ownership, the deposit you put down is much smaller than for a home on the open market.
This is because you only need to purchase a share of your Shared Ownership property (usually around 25%), and put down a deposit that reflects the share size!
For example, at Dagenham Green, you can buy a 30% share of a £270,000 1-bedroom home for £81,000. With a 10% deposit, you’d only need £8,100 upfront.
While you’ll also be expected to pay rent on the part owned by your housing provider, this often amounts to much less than buying or renting privately.
Looking at the same Dagenham Green example, your monthly payments would start from around £1,007 a month.
Homes come with built-in appliances
When you move into a regular apartment, you’ll often be required to purchase your own appliances.
But with a new-build Shared Ownership property, you’ll be able to enjoy a home that is fully ready to move into with the latest appliances, requiring very little additional expense on your part.
Some of our homes also come furnished, meaning you’ll only need to make the smallest cosmetic changes to make the home truly yours.
Shared Ownership homes have subsidised rent
Paying for a share of your home and rent simultaneously might sound like a great expense, but it can be much lighter on your wallet.
In a Shared Ownership, rent on the unsold equity is typically capped at 2.75% of the property's market value. This is usually lower than equivalent private market rental yields.
Example of a 1-bedroom Shared Ownership home at West Ham Village
| Financial detail | Amount |
|---|---|
| Full value | £435,000 |
| Share value | 25% |
| Share price | £108,750 |
| Deposit required | £10,875 |
| Monthly mortgage | £531 |
| Monthly rent | £544 |
| Monthly service charge | £298 |
| Total monthly cost | £1,372 |
| Minimum household income | £58,143 |
And when you do decide to buy additional shares through ‘Staircasing’, the rent you pay will decrease even further!
We are currently seeing rents rising in the UK, so buying and then benefiting from subsidised rent could help many renters, especially in and around London.
Recent research has found that Shared Ownership is usually more affordable than private renting across the UK. In fact, Shared Ownership is projected to cost less than renting over 10 years in 93% of local authorities.
The long-term benefits can be even greater when you factor in equity growth. Shared owners are typically expected to build around £29,000 in equity through capital repayments and house price growth, rising to around £42,000 in London.
Enjoy plenty of entertainment from home
Managing your monthly mortgage repayments alongside paying for a lively London lifestyle is a difficult balance to strike.
But what if you could hit two birds with one stone? Welcome to the world of Shared Ownership, where you can enjoy an active social life without ever leaving your home.
Many Shared Ownership developments offer communal terraces, shared spaces, and even screening rooms, perfect for socialising and hosting friends.
So if you fancy a rooftop cocktail or movie night without paying for it, you can enjoy an affordable night out from home!
Reduced environmental impact
Shared Ownership doesn’t just boost your financial situation. It also gives a huge helping hand to the environment!
Why? Because new-build apartments are designed with sustainable, long-lasting materials, and don’t need nearly as much energy to function. So, by saving money through Shared Ownership, you'll also be making a positive impact on our planet - what’s not to like!
A great example is Deptford Edge, where homes are being built to Passivhaus standards. This means they’re designed to use far less energy for heating and cooling, helping to reduce both carbon emissions and everyday energy costs. For buyers, that means a more comfortable, efficient home that’s better for the planet and easier to run.
You can start saving money today with a Peabody Shared Ownership property. With developments in the most popular parts of London, you can live your dream lifestyle in the capital, without constantly worrying about your bank balance.
What income do you need for Shared Ownership?
There isn’t one set income you need for Shared Ownership, because affordability depends on the home’s full market value, the share you buy, your deposit, mortgage rate, rent and service charge. But the difference compared with buying outright in London can be significant.
As of March 2026, the average house price in London was £542,000, according to the UK House Price Index. Separate Zoopla data reported by Time Out suggests the average household income needed to buy a London home is around £99,406, based on a 20% deposit and a mortgage worth 4.5 times annual earnings.
Shared Ownership can make buying in London more accessible because you only need a mortgage for the share you purchase, rather than the full value of the home. Based on current Peabody Shared Ownership pricing, the income needed can vary widely by development, location and home size.
At the more affordable end, a one-bedroom home at Dagenham Green with a full market value of £282,500 could be achievable on a salary of at least £42,389, subject to eligibility and affordability checks.
In simple terms, many buyers looking at Shared Ownership in London in 2026 may need a household income from the mid-£40,000s for some of the more affordable one-bedroom homes, rising to £70,000+ for larger homes or higher-value locations.
To be eligible, your total household income must usually be £90,000 a year or less if you’re buying in London.
Frequently asked questions about Shared Ownership affordability
Most lenders ask for a deposit of around 5-10% of your share, although some may require more, especially for new-build flats.
For example, if you bought a 50% share of a home worth £300,000, your share would be £150,000.
A 10% deposit would therefore be £15,000.
The more you can put down, the more mortgage options you may have, which could help reduce your monthly repayments.
However, Shared Ownership can still make buying a larger home more accessible.
For example, at Dagenham Green, a 2-bedroom home could require a deposit from around £12,000, while a 3-bedroom home could require around £13,800 for a 30% share of a £460,000 property.
Because you only need a mortgage on the share you purchase, the income needed can be much lower than buying outright.
For example, buying a 25% share of a £450,000 London apartment would mean getting a mortgage on around £112,500, rather than the full £450,000.
This could bring the income needed down from around £90,000 to closer to £45,000-£60,000, depending on your circumstances.
As a guide, some 1-bedroom Peabody Shared Ownership homes start from:
- Southmere – £83,125 for a 25% share, with a minimum income of £40,738
- North Gate Park – £99,375 for a 25% share, with a minimum income of £43,688
- Lombard Square – £99,000 for a 25% share, with a minimum income of £52,642
- The Verdean – £100,750 for a 25% share, with a minimum income of £59,068
- Chelsea Botanica – £143,750 for a 25% share, with a minimum income of £62,830
In many cases, Shared Ownership can be cheaper than renting privately, especially over the long term. This is because you buy a share of your home and pay subsidised rent on the remaining share, rather than paying full market rent to a private landlord.
Recent research suggests Shared Ownership is projected to cost less than renting over 10 years in 93% of local authorities. It can also offer longer-term financial benefits, as shared owners may build equity through mortgage repayments and potential house price growth, rather than spending all their monthly housing costs on rent.
