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.
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.
Benefits of Shared Ownership
Buying a share of a home means a smaller deposit is required compared to buying a new home outright.
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Affordability
Shared Ownership is a more affordable way to purchase a home without needing a huge deposit.
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Quality
With Shared Ownership, you can own a high quality, new build home affordably without compromising on location or quality.
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Flexibility
You can buy as much of the property as you can afford, staircasing to buy more shares in the future until you own the home outright.
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Start your homeowner journey
Shared Ownership is a great way to get out of the renting cycle and become a home-owner.
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Make it your own
With Shared Ownership you will own the home and be able to decorate it however you like.
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Share in the profits
You can sell your home at any time and will benefit from any increase in value when you come to sell.
Homeowner Stories
Discover a collection of homeowner stories from previous Peabody New Homes purchasers and find out how we were able to help them onto the property ladder and find their dream home through Shared Ownership.
"Everyone at Peabody New Homes was so helpful and very efficient, guiding us through each stage of the process."
"I looked at one-bedroom rental properties in the area but a lot of them were really expensive, I’d be looking at a minimum of £3,000 to rent somewhere nice. Buying through Shared Ownership means I am investing in a space of my own, in a location I love."
"We looked at 11 homes in total and they just didn’t feel right for a number of reasons. Once we saw what Peabody New Homes had created here at Southmere, there was no doubt whatsoever."
"When I look back at the first home I had reserved, I feel so lucky it fell through, as the day I visited The Switch I just knew it was the perfect place for me."
"We 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!"
What to read next...
Read some more useful guides and articles on buying with Shared Ownership.