Rachel Eardley is the sales adviser at Plumlife’s flagship development, Worrall Street. Throughout her career, she has helped more than 120 customers buy their first home across the North West. Rachel is passionate about Worrall Street as it attracts a wide demographic, so she is able to support customers at all different stages of their homeownership journey. Manchester is experiencing huge regeneration and attracting young professionals from all over the country – Rachel loves showing them that the North is the place to be! The city’s growing popularity is pushing house and rental prices up, but Rachel is happy to explain how Shared Ownership offers a solution
I’m looking to get on to the property ladder, but I don’t know whether Shared Ownership or Rent to Buy is the better option for me?
Whether you’re a first time buyer or purchasing a new place, buying a home is one of the pivotal moments of life. Given its significance, it’s important that you make the right decision for yourself. There are a number of routes to homeownership, which we know can be confusing! So, we’re going to break it down for you. Of course, you can buy on the open market – but this can be very expensive and out of reach for a lot of people. This is where the Shared Ownership and Rent to Buy schemes step in, offering more affordable ways to get on to the property ladder. So, what’s the difference?
Shared Ownership
Shared Ownership offers a straightforward, flexible route to homeownership. Instead of purchasing a property outright, you can purchase a share that you can afford – typically between 25% and 75%. In some cases, you can buy from as little as 10% of a home, if that’s the share level that’s affordable to you.
You would then pay a subsidised rent on the remaining share alongside your mortgage costs. This approach requires a much smaller deposit, making it ideal for first time buyers or those with limited savings.
In the future, you can usually buy more shares of the property, or even purchase it outright through a process called “staircasing”.
Shared Ownership provides an affordable and sustainable path to making your dream home a reality.
Rent to Buy
The Rent to Buy scheme is designed so you can “try before you buy”, supporting you while you find your way to own. But there’s no rush, and you don’t have to make the decision next week, you won’t even need to make it next year. The whole point is easing you into the process one step at a time. With Rent to Buy, you can rent your home at an affordable discounted rate (usually up to 20% lower than average local market rents) for up to five years while you save to buy all of your home or a share of it in the future. That 20% goes straight back into your savings, meaning you’re building up your deposit from day one.
So which scheme should you choose?
Ultimately, the scheme you choose comes down to your own circumstances and personal preferences.
Both options provide great routes to homeownership, providing greater accessibility to those who find that they are unable to buy outright.
With Shared Ownership you can gradually increase the share you own over time via staircasing, while with Rent to Buy you will have more flexibility and an opportunity to transition from renting to owning.
It’s important that you choose an option that’s affordable for you, both now and in the years ahead.
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.
