Own 10%, Live 100%: A Renter’s Guide to Shared Ownership in London.
Saving for a home in London while renting can feel impossible. You’re working hard, but every month your income disappears on rent, while that deposit keeps getting further away as house prices climb.
But here’s something you might not know – you don’t need a massive deposit to buy your first home in London. With NHG Homes offering shares starting from just 10%, homeownership might be closer than you think.
What Actually is Shared Ownership?
Think of Shared Ownership as a stepping stone on to the property ladder – one that gets you there now, rather than years down the line. Instead of buying 100% of a property, you buy a share starting from just 10%. You pay a mortgage on your share, below-market rent on the rest, and the usual service charges.
Here’s where it gets interesting: your deposit is only calculated on the share you’re buying, not the full property price. If you’re buying a 10% share of a £400,000 property, your deposit is based on a £40,000 mortgage, not £400,000. In real terms, that could mean needing just £4,000 for a 10% deposit, just 1% of the overall property value. Compare that to the £40,000 deposit you’d need buying outright.
Save Thousands Every Year
At Laney House in Greenwich, NHG Homes’ Shared Ownership apartments have monthly costs starting from around £1,266 when purchasing the minimum 10% share with less than £2,000 deposit. This covers your mortgage, rent, and service charges combined. The average rent for a one bedroom in the same area? Around £1,600. That’s nearly £4,000 back in your pocket annually, money you could use to increase your share through “staircasing” or simply enjoy greater financial breathing room.
At The View at Aspect in Croydon, total monthly costs start from £1,177 when purchasing a 25% share with less than £5,000 deposit, compared to around £1,400 for private renting nearby, a saving of close to £2,700 yearly.
The rent you pay on the share you don’t own is subsidised by up to 35% compared to market rent, with rental increases capped according to your lease, protecting you from unexpected hikes and giving you the security of a long-term lease.
Is This Right for You?
Shared Ownership could suit you if you’re earning a steady income but haven’t saved a traditional deposit or don’t yet have enough to buy on the open market. The 10% share option brings deposits down to achievable amounts you could realistically save in a year or two, rather than waiting a decade.
As a shared owner, you typically don’t pay Stamp Duty until you own more than 80% of your home. Most Shared Ownership purchases remain free of Stamp Duty, while comparable open market properties now incur larger costs since Stamp Duty thresholds were lowered in April 2025.
How NHG Homes can Support You?
At NHG Homes, we’ve developed resources to help you make informed decisions: cost calculators for realistic monthly projections, connections to independent financial advisers, dedicated customer service, and comprehensive repairs support on certain leases.
Ready to Explore?
NHG Homes is an award-winning Shared Ownership brand with more than 40 years of expertise building affordable homes in London. If you’re looking for inspiration to start your search, you’ll be entered into a prize draw to win a £250 voucher* for every NHG Homes development you visit in March – one entry for every development you view!
See where your budget could take you at nhghomes.com/compare-the-costs.
*Terms and conditions apply.
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
