The Future of Housing: Is Shared Ownership the Answer? 

For years, the UK housing market has put pressure on first-time buyers. With private rents in London skyrocketing, many graduates and young professionals are left with two choices: move back in with parents or dedicate a huge portion of their salaries to housing costs.

But is there a different way forward? Increasingly, Shared Ownership homes in London are being seen as the answer. This scheme bridges the gap between renting and buying, giving new buyers a chance to take their first steps towards homeownership in a smart, accessible way. 

What does Shared Ownership mean? 

Shared Ownership allows you to purchase a percentage of a home, usually between 25% and 75%, while paying subsidised rent on the remaining share. This means your monthly outgoings will combine both rent and mortgage payments. 

Deposits are based on the portion you buy, meaning they’re significantly lower than saving for a full property price. Plus, over time, you can choose to buy additional shares, known as staircasing, until you own the property outright.  

Why Shared Ownership is Gaining Momentum

There’s a reason Shared Ownership is becoming a popular choice amongst first-time buyers. Some key benefits include: 

Lower Deposits 

Saving up for a deposit is one of the primary reasons why many first-time buyers struggle to move out. With Shared Ownership, you’re purchasing a share in a property, meaning your deposit will be based on the share value rather than the full value of the property. For example, if you want to buy a 25% share in a £200,000 home, your share is worth £50,000.  For a 5% deposit, you would only need to save £2,500. 

Greater Affordability 

Even though your monthly outgoings will combine both rent and mortgage payments, rent on Shared Ownership homes is subsidised, meaning it is usually lower than renting privately. 

Stability 

The Shared Ownership route offers you long-term security, and unlike most rental properties, you can freely decorate your home and make it truly your own.

Flexibility 

You can enjoy the option to staircase your home and increase ownership when it suits you or choose to sell your home if you decide to. 

The Role of Shared Ownership in the Future of Housing

The UK property industry is urging the government to support more cost-effective solutions like Shared Ownership to tackle the housing crisis.

Shared Ownership offers affordability, stability and flexibility. By providing a pathway to full homeownership, it’s vital in shaping the future of housing in London and beyond.  

Is Shared Ownership Right for You? 

If you’ve been priced out of the London housing market, Shared Ownership could be the first step towards securing a home of your own in the capital. With lower deposits, reduced rent and the ability to build ownership up over time, it’s a practical and future-proof choice for many buyers.

At Square Roots, we’re proud to offer Shared Ownership homes in London, combining high-quality designs with excellent transport connections. Explore our latest developments and see how Shared Ownership can help you take that important step towards homeownership.