What are the benefits of shared ownership over renting?

QI am currently living in a rented property in London. What benefits would I see if I bought a shared ownership property rather than staying in a rental?

Chris Hamstead, Peckham

AThere are many benefits to buying through the Government-backed shared ownership scheme, not least because it will get you on the property ladder. Particularly in the current property market, a scheme such as shared ownership provides an invaluable opportunity for first time buyers. Through shared ownership, you purchase a share of the property you are interested in. The great thing about this is that the minimum share is often around 25-35%, meaning you will only have to take out a mortgage for a small percentage of the home – an easier feat than buying outright. This also means the deposit required, typically the biggest hurdle for first time buyers, will be lower.

A shared ownership home also allows you to continue your property journey through the process of staircasing. This is when you buy a higher percentage of your home once you’re ready to do so; there is no time pressure.

Moving away from finances, a shared ownership home allows you to add your individual style, a major restriction with a rented property. The home is yours, so paint, add furniture and hang pictures as you please. Also, with a new build shared ownership home, the property is much more sustainable and could save you £3,100 a year on bills compared to an older property.¹

Finally, shared ownership homes, such as our apartments at No.1 Creekside in Lewisham, are often based in regeneration areas, so residents can make full use of the local amenities and watch the neighbourhood prosper. Lewisham is undergoing huge investment with local shops increasing, eateries diversifying, education facilities growing, and green pockets popping up everywhere.

If you are a first time buyer, shared ownership is definitely a route to consider due to its economic, social and personal benefits.

Karen Woodcock

1 hbf.co.uk/news/hbf-report-watt-save/ New HBF report finds new build buyers could save more than £3,100 a year when the Energy Price Guarantee (EPG) increases