Shared ownership set to become more affordable than private rent in 93% of areas across England*
Our newly published research has revealed shared ownership is forecast to be cheaper than private rent in 93% of areas across England over 10 years.
The research Taking the Longer View: Shared ownership, costs and opportunities – an independent assessment, was carried out by independent experts Bob Pannell and Peter Williams.*
The report incorporates whole-of-market lending data for the first time and reveals the long-term financial benefits of the shared ownership scheme.
Key highlights of the research
- Of 294 local authorities, shared ownership is forecast to be more affordable than private rent in 272 (93%) in year 10 - rising from 227 (77%) in year one
- Across 83 ‘high rent’ local authorities, where rental payments make up over 30% of income, shared ownership is more affordable in 81 (98%) at year 10, rising from 77 (93%) in year one
- Capital repayments and house price increases are forecast to make shared owners on average £29,000 better off as a result of equity growth, rising to £42,000 in London
Andrew Greenwood, Leeds Building Society Deputy CEO said “Our independent research shows that shared ownership extends the promise of homeownership to more people and will make the majority financially better off over time.
We’re calling on the government to recommit its support for affordable homeownership by building more shared ownership homes and making this a key part of the forthcoming Affordable Homes Programme. This is because of the benefit it will deliver to those looking to get on the housing ladder during one of the hardest times to buy a home.”
The benefits of shared ownership
We understand that shared ownership may not be the right choice for every client, but it plays an important role in putting home ownership within reach of more people.
- It’s widely accepted as the most effective way of reducing the deposit hurdle for first-time buyers as a deposit is only required on the share the customer is buying
- Our report also shows significant evidence of the benefits of buying a shared ownership home compared to renting privately
- Shared ownership customers can gradually staircase up to owning a larger share, or the whole share of the property
There are many choices for customers seeking a mortgage to purchase their shared ownership home, from smaller regional building societies to national high street banks. Customers using a mortgage to purchase their property will, in most cases, require a deposit. This deposit is calculated based on the share they are purchasing rather than the property’s full open market value (a key reason for the appeal of the scheme).
Why choose us for shared ownership?
The No.1 lender in the market in 2024
We continued to be the leading shared ownership lender, with a 23.5% year-on-year increase in applications for shared ownership mortgages.
Award-winning (nine years running)
We’ve won a number of awards for our shared ownership range, including What Mortgage's Shared Ownership Lender of the Year for nine years in a row. That’s not to mention three years on the trot of Money Age Best Shared Ownership Lender awards.**
Fast app-to-offer times
We’re proud to offer fast application-to-offer times, helping to reduce the nerves of your first time buyer.
Brilliant broker support
We offer a range of contact options that suit you, all staffed by experts. These include dedicated contact telephone numbers for new or existing applications, a live broker webchat service, experienced underwriters and a dedicated local BDM.
[Find out more about our shared ownership products]
* Taking the Longer View: Shared ownership, costs and opportunities – an independent assessment is a report by Bob Pannell and Peter Williams. The report was commissioned by Leeds Building Society and produced in January 2025.
** Information correct as of 31st December 2024.