At Peabody New Homes, we offer a wide range of new build Shared Ownership homes across London and the home counties, giving buyers access to modern homes in desirable locations with high-quality finishes and excellent amenities.
In this article, we explore the top six reasons buyers choose Shared Ownership and why it could be the right option for you.
What Is Shared Ownership?
Shared Ownership is a government-backed scheme aimed to make home-ownership more affordable. It allows buyers to purchase a share of their home (usually starting from 25%) and pay rent on what they do not own.
At Peabody New Homes we have a range of new build Shared Ownership homes throughout the capital and the home counties.
How does Shared Ownership work?
Shared Ownership works by allowing potential buyers to purchase a share of a property. You only need a deposit for 5-10% of the share you are buying, which makes the cost to entry significantly lower than buying a home the traditional way.
You will then pay subsidised rent on the share you do not own, as well as a service charge to pay for the amenities. You can read our article on an example of Shared Ownership costs for more information.
Who is Shared Ownership for?
Shared Ownership is designed for those who want to get onto the property ladder but may not be able to afford a home outright on the open market.
It’s particularly suited to first-time buyers, those returning to homeownership after a change in circumstances, or people currently renting who have a stable income but limited savings for a full deposit.
By purchasing a share of a property and paying rent on the remaining portion, buyers can enjoy the benefits of homeownership with a lower initial financial commitment, making it a more accessible option for many. You can see our Shared Ownership eligibility page to see if you can apply.
Reasons buyers choose Shared Ownership
Peabody New Homes has helped thousands of people step onto the ladder and buy their own home throughout London and the Home Counties. Read on to learn the key reasons why home buyers have chosen to take the Shared Ownership route.
1. Lower deposit requirements
One of the main reasons why buyers choose Shared Ownership is because of the lower deposit requirements. As you are only getting a mortgage on the share that you are purchasing, the deposit can be as low as £8100 (e.g. Dagenham Green).
After saving for 5 years and after thinking he would not be able to buy in London, Ben became a homeowner at Oval with a 5% deposit of £8,000:
“Before seeing Zone, I hadn’t heard of Shared Ownership, so I did some research and realised that this was a brilliant way for me to get onto the property ladder. I put down a 5% deposit, which was just under £8,000 - a lot lower than I had assumed would be possible in this location - and my mortgage payments are £981 per month.”
Robert and Kate became homeowners of a two-bed apartment at Three Waters with a deposit of £15,000:
“We only needed around a £15,000 deposit to buy a 25% share of our home, worth £125,000. Shared Ownership is really a very powerful scheme for helping first-time buyers get onto the ladder and it’s great that Peabody New Homes has put us in a position where we didn’t need to rent somewhere again when our landlord decided to sell.”
Buying with a lower deposit also helped Aroma, a wealth manager who had been renting in London since 2015. When the pandemic hit, she moved back to Birmingham to live with family, giving her the opportunity to save.
Determined to buy her own place but unsure how to afford it on her salary, she discovered Shared Ownership.
By purchasing a 30% share of a three-bedroom apartment in northwest London, Aroma was able to get on the property ladder with a lower deposit.
2) More affordable monthly costs
Another key factor is that buying through Shared Ownership often means lower monthly costs than renting in the same area.
For example, at New Mansion Square, the average monthly cost for a one-bedroom Shared Ownership apartment is £1,991 – compared to £2,851 for renting a similar home in the same area. That’s an average saving of around £860 each month.
For Josephine who bought at Motion, the choice was simple:
“If I were to rent a one-bed in this area I would be paying almost double what I am now, so for me, it was a no-brainer. Being self-employed and wanting to buy on my own came with challenges but it was well worth it."
Garett and Guido bought through Shared Ownership after spending £1,900 a month on rent. The couple has since seen their monthly outgoings reduced dramatically to just above £1,050 pcm (not including bills).
Clement bought a share of a one-bed apartment in White City after also spending years renting in London:
“In many ways, not having full ownership can be an advantage as it allows you to keep costs lower while giving you time to increase your earnings and work toward a stronger financial position.”
His total monthly outgoings, including rent and service fees, come to around £1,200.
For an example of the savings possible with Shared Ownership, the average costs for a 1-bed apartment at New Mansions Square is £1,991 a month. Compare this to the average monthly rental price for a 1-bed in the same location which is £2,851. This means an average saving of £860 for New Mansion Square.
3) Step onto the property ladder sooner
Thanks to the lower upfront costs of Shared Ownership, you can get on the property ladder sooner as many of our homeowners have found.
Robert and Kate bought a 25% share of a two-bedroom apartment at Three Waters, after initially thinking they would have to save for longer to buy in London.
“We had initially been expecting to have to save for another year or so in order to afford anywhere in London, but at Three Waters we only needed around a £15,000 deposit to buy a 25% share of our home, worth £125,000. Shared Ownership is really a very powerful scheme for helping first-time buyers get onto the ladder and it’s great that Peabody New Homes has put us in a position where we didn’t need to rent somewhere again when our landlord decided to sell.”
After 15 years of renting in West London, Osman also managed to get onto the property ladder at City Angel thanks to Shared Ownership:
“Discovering Shared Ownership was honestly life-changing. I never even considered buying in London before—it just didn’t seem feasible with how expensive it is. But after my friend shared his experience with Shared Ownership in Elephant and Castle, I decided to do my research. I searched Shared Ownership on Google and found Peabody. After learning that they are one of the largest housing associations that provide Shared Ownership in the UK and reading numerous positive reviews, I felt confident moving forward with them. The more I investigated it, the more it seemed like an incredible option.”
4) Flexibility to buy more Shares (Staircasing)
After buying your initial share of a Shared Ownership home (at least 25%), you will have the option to buy more shares over time, this process is called Staircasing.
Buying more shares will reduce the amount of rent you pay, and it’s also possible to Staircase to 100% ownership.
This dream of full ownership became a reality for Aroma & Fatima:
“This is exactly what staircasing is all about. You buy as much as you can, when you can. You can evolve your homeownership as your circumstances change. For us, it made total sense."
Steven and Rachel bought a 50% share of a three-bed home in Houghton Regis, and they plan to Staircase to full ownership:
“We definitely plan to staircase. When we staircase to 100% at The Lanes, we will even own the freehold of the property – something I didn’t think would be possible a few months ago, when I thought we wouldn’t even be able to get the mortgage. It’s a dream come true!”
5) Access to high-quality new homes
Buying through Shared Ownership with Peabody means access to top-quality new builds, as Osman at City Angel found:
“The specification is outstanding. Everything has a luxury look and feel—even the hallways and the main door reminds me of a 5-star hotel. The high ceilings and beautiful windows are unique touches that I couldn’t find elsewhere. They flood the space with light and make it feel even more expansive.”
Peabody new build Shared Ownership homes also come with amenities such as 24/7 concierges, residents rooms, roof terraces, and more:
“Having a 24-hour concierge on hand is incredible and is one of the things that I wanted when looking for a place to live. I have also used the rooftop terrace, which is a landscaped communal area that captures skyline views of the city. There is also an on-site gym that is due to open in the next few months, and I can’t wait to use that!” – Ben, homeowner at Zone.
6) Buy in great locations
Finally, buying through Shared Ownership allows you to live in some of the most desired locations in London and beyond.
For Clement, Shared Ownership made it possible to secure a one-bedroom apartment at Macfarlane Place in White City, an area he loves and knows well.
“I love being able to live in an area that truly feels like home. My family is incredibly important to me, and being so close to them makes a huge difference. I see them all the time, which wouldn’t be possible if I had to move further out.”
Similarly, Tabby’s two-bedroom apartment at Zone, Oval Village, puts her in the heart of Central London.
“Obviously I loved the apartment and the development as a whole, but the main draw for me was how central the location was. I thought I was central in Wapping but no way – here, I can jump on a bus and be in Covent Garden in 10 minutes. I’m a huge musical theatre fan and the joy of living so centrally is that you can get those last-minute tickets for amazing value. I can buy my tickets 30 minutes before the show starts, and still arrive with time to spare!”
7) Shared Ownership gives security
One of the biggest benefits of Shared Ownership is the sense of security it provides, especially for those moving on from renting.
For Josephine, owning her home meant she no longer had to worry about finding new flatmates or being asked to move out.
“It offers more security, as no one can ask me to move out and I don’t have the stress of trying to find new flatmates. Shared Ownership has enabled me to do this alone, something I feel really proud of!”
Bridget, a homeowner at Honeybooke, also emphasises the peace of mind it brings for her and her children:
“I wouldn’t have been able to afford anything like this without Shared Ownership. It’s security for me and for my children that you just don’t get when renting.”
For Josh and Mia, Shared Ownership allowed them to create a stable home for their family and pets:
“Owning a house with a garden in such a great area is a dream for us… Our plan is to staircase to the full amount. When we added up how much we have paid in rent over 11 years, we could have paid off our mortgage.”
Frequently asked questions about reasons for choosing Shared Ownership
With Shared Ownership, you can typically buy a minimum 25% share of a property, making it easier to get on the property ladder. You then pay a mortgage on your share and rent on the remaining portion. Some schemes may allow you to start with a higher share depending on the property and location.
Yes! You can sell your Shared Ownership home. You can read our page on how to sell a Shared Ownership home for more information.
Yes, you pay a reduced rent on the portion of the property that you don’t own (2.75% with Peabody). This makes monthly costs more manageable compared to buying outright, while still allowing you to benefit from homeownership.
Staircasing allows you to gradually increase your share of the property over time. For example, you might start with a 25% share and later buy additional percentages (e.g., 10% or 25%) until you eventually own 100% of the home. This provides flexibility to increase your ownership as your finances allow.
