Is Shared Ownership Cheaper than Renting?
In the quest for affordable and sustainable housing solutions, Shared Ownership is a clever alternative to private renting. Providing first-time buyers with the chance to step onto the property ladder instead of struggling with affordability and having to continue to rent. At SHNH , we make sure our developments are located in areas that offer vibrancy, space and connectivity; three things we know first-time buyers value most.
In this article, we’ll explore the cost-effectiveness of Shared Ownership compared to renting in several of our key locations. Looking into the average rent in each area, we'll shed light on the financial advantages of choosing Shared Ownership.
Bethnal Green, East London, is a vibrant and diverse neighbourhood that has risen in popularity in recent years as a hub of great food and creativity. The average rent for a one-bedroom apartment in Bethnal Green is approximately £3,086 per calendar month (pcm). In contrast, Shared Ownership allows aspiring homeowners to enter the property market with a more manageable initial investment, often resulting in lower monthly costs. Our one-bedroom properties in Bethnal Green have estimated monthly costs starting at only £1,464 pcm, based on ownership of a 25% share.[ro1]
2. Hackney Wick
Hackney Wick, known as one of London’s trendiest and most creative parts of the city, is a sought-after area popular for younger buyers seeking access to the excitement of East London. Private renting in Hackney Wick can cost around £2,069 pcm for a one-bedroom flat, and £3,813 pcm for three-bedrooms. Shared Ownership presents a more affordable entry point in Hackney Wick, with our modern one-bedroom apartments which are estimated to have monthly costs starting at only £1,464 pcm, based on ownership of a 25% share.
3. Hove
Located on the picturesque South Coast, Hove is known for its seaside charm and proximity to the excitement of Brighton. Renting in Hove averages around £1,817 pcm for a two-bedroom property, whereas our two-bedroom Shared Ownership apartments that feature gorgeous views overlooking Hove's seafront have an estimated monthly cost of £1919 pcm. Whilst Shared Ownership may be more expensive in this case it’s important to remember that this scheme also gives you the first leg up on the property ladder in an incredibly sought-after location and area.
4. Guildford
Guildford, a beautiful historic town with excellent transport links to London, offers an appealing blend of urban and rural living with more space than in the city. A highly sought-after place to live, renting in Guildford costs an average of £2,481 pcm for a three-bedroom property, which can quickly swallow up the monthly paycheck even of those earning a well above average salary. Shared Ownership creates a much more accessible way to buy in Guildford, with our three-bedroom homes featuring estimated monthly costs from just £1931 pcm based on a 30% purchase share. Compared to the average, this leaves Shared Ownership buyers with an extra £550 pcm to other life expenses and ultimately allows them to join the property ladder.
Shoreham-by-Sea, a charming coastal town in West Sussex, is known for its scenic beauty and community atmosphere. Renting a two-bedroom property in Shoreham costs on average £1,609 per month. Shared Ownership opens the door for individuals to invest in a home in this tranquil seaside location, with our two-bedroom homes estimated to cost from £1,210 per month.
In the pursuit of affordable homeownership, Shared Ownership stands out as an often financially advantageous alternative to private renting. Not only does it provide a pathway to getting onto the property ladder, it also offers individuals the chance to enjoy the benefits of living in desirable neighbourhoods at a more accessible cost. These diverse locations where SHO offers beautiful collections of homes showcase the financial advantages and opportunities for individuals to achieve their dream of owning a home.
Discover our various developments in both urban and countryside locations and find out if Shared Ownership could be the best option for you.