Comparing Shared Ownership to Private Renting: Which is the Better Option?

Comparing Shared Ownership to Private Renting: Which is the Better Option?

In today’s ever-changing UK property market, many people who want a place to call their own face a tough choice: should they try shared ownership or just stick to renting?

New build shared ownership properties in the UK have opened doors for many individuals and families who aspire to own their homes without the traditional financial burden. This decision can greatly affect your financial situation and residence.

Shared Ownership:


Start on the Property Ladder: Shared ownership lets you take your first step towards owning a home. It is more affordable to become a homeowner because you only buy a share of a property and pay rent on the remaining of it.

Stability and Control: When you pick shared ownership, you have more stability than renting. You can personalise it according to your choice as you own a portion of your property.

Chance to Make Money: As the property’s value goes up, your share’s value goes up too. This means you could buy a bigger share of the property or even the whole thing over time, which can be a smart long-term move.


Limited Choices: Shared ownership properties are difficult to find, especially in popular areas.

Extra Costs: With shared ownership, you still have to pay rent on the part you don’t own, along with service charges and maintenance fees. As time goes by, these expenses can add up.

Rules and Restrictions: Shared ownership homes often come with rules about selling. If you want to sell your share, your landlord or housing association may get the first chance to buy, which could delay the sale.



Flexibility: Renting gives you the freedom to move when you need to, whether it’s because of a job change or family size.

No Extra Costs: As a renter, you usually don’t have to worry about fixing things. Your landlord is responsible for making sure the repairs are done.

Lots of Choices: You have the choice to live wherever you wish thanks to the variety of houses available on the rental market in various locations.


No Investment: The money you spend on rent doesn’t help you build equity or own property. In the long run, this can be a financial drawback compared to shared ownership.

Less Control: When you’re a tenant, you have less say over your living space. You might need your landlord’s permission for changes or renovations.

Rising Costs: Rent can go up every year, making it less affordable over time and causing housing instability.

Making the Right Choice:

When you’re deciding between shared ownership and renting, think about your own situation, plans, and how much money you have.

Financial Situation: Shared ownership may be a more reasonable approach to increase your home’s equity if you can acquire a mortgage and have a steady source of income.

Long-Term Goals: Consider your choice for the future. If you want to settle in one place and own a home, shared ownership can lead to full property ownership.

Flexibility Needs: If you expect changes in your life, like a new job or a bigger family, renting gives you the flexibility you need.

Location and Choices: Think about where you want to live. Shared ownership might not be available in your ideal location while renting offers more options.

Budget: Look closely at your budget, considering rent or mortgage payments, maintenance costs, and other expenses. This will help you choose the option that fits your money situation.

Future Plans: Think about your future plans. If you want to fully own a property and invest in it, shared ownership is a clear choice for building equity over time.

In Conclusion:

There’s no right or wrong answer in the shared ownership vs. renting debate. Shared ownership is a good way for those looking to become homeowners and invest in the future. Renting is for those who value flexibility and a wide variety of housing options.