As a first time buyer, the ultimate aim is to get on the property ladder, and Shared Ownership is a tried-and-tested route to achieving this goal. Historically, there has been little research into the long-term outcomes for buyers but Leeds Building Society (in conjunction with UK Finance) has just published an independent assessment of the scheme, aiming to address this gap in knowledge. Debbie Clark considers the findings, and the ongoing benefits of Shared Ownership
Taking the Longer View. Shared Ownership, Costs and Opportunities – an Independent Assessment is a report undertaken by Bob Pannell and Peter Williams – both respected independent experts on housing markets – for Leeds Building Society, published in February 2025.
Andrew Greenwood, Deputy Chief Executive at Leeds Building Society, explains, “We’ve taken the step of using extensive data from our own lending as well as the wider mortgage market, kindly provided by UK Finance, to support a thorough and objective study which explores an important question: when is Shared Ownership a better financial option than staying in the private rented sector?” He continues, “The job was not to make a case for Shared Ownership or any other housing option, but to weigh the numbers, analyse the outcomes, and let the evidence speak for itself.”
Suffice to say, the evidence does exactly that. Of 294 local authorities, Shared Ownership is forecast to be more affordable than private renting in 227 (77%) in year one, rising to 232 (79%) in year five and 272 (93%) in year 10. These results were even more significant in “high rent” local authorities (where rental payments make up over 30% of income). Shared Ownership is more affordable in 93% of these areas in year 1, and 98% of them by year 10.
The next stage of the analysis factored in capital repayments and house price growth, and the results indicated that in 97% of local authorities shared owners are also financially better off as a result of growing equity. In fact, by year 10, shared owners are on average £29,000 better off than private renters, peaking at £42,000 in London.
For simplicity, the study did not factor in “staircasing”, where the owned share of the property is increased over time, but in these cases the gains would of course be even greater.
The impartial study, which used deliberately conservative models, concluded, “Looked at over a decade and across the whole of England, Shared Ownership is capable of delivering beyond its headline attraction of reducing the deposit hurdle. It provides ongoing and improving affordability from year one onwards and, crucially, delivers benefits in terms of asset accumulation. On these metrics, Shared Ownership delivers strongly… Without any doubt, the majority of shared owners will be materially better off by making this choice.”
These findings are fantastic news for those taking their first tentative steps into the Shared Ownership market, building confidence that it is a strong move financially long-term, and not simply a shortcut to getting a foot in the door.
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.
