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Shared Ownership vs Renting

Dec 19, 2024
If you’re wondering whether renting is better than buying a home through shared ownership, we’re here to help. Both bring significant advantages and disadvantages, and the right option for you depends on your unique circumstances. 
 
Our handy guide explores the pros and cons of each to help you make an informed decision. 
 

Shared ownership pros and cons

Shared ownership brings advantages and disadvantages, including the following:

 

 Pros  Cons  
You could buy your new home quicker because you’ll need a smaller deposit and mortgage. Shared ownership properties are leaseholds, meaning you won’t own the land they sit on.  
 You can increase the share as and when you can afford it. You may need to pay service charges and ground rent. 
Shared ownership is available for new builds, existing properties and flats.  If you want to sell, you may need to do so through the shared ownership scheme rather than on the open market.  
 It’s a great alternative if you have a lower income.  Buying more shares comes with extra costs.  
 

Renting pros and cons

Renting also has pros and cons, including the following. 
 Pros   Cons
 Rental properties can come furnished and require less maintenance from you, as the landlord handles this.   When you rent, you don’t own any part of the house. So, if its value increases, the landlord is the only one who will benefit.
 Renting offers more flexibility, so if your situation changes, you can usually move without hassle.  Landlords usually require a large deposit upfront. This is so they can cover unexpected costs and fees.
 Paying your rent on time can improve your credit score.   Renting can be unstable, as the landlord may decide to sell the property during your tenancy. 
 

Is shared ownership better than renting?

There is no right or wrong answer, as it depends on your situation. Renting is your best pick if you want extra flexibility. If you’re ready to own a house but don’t want the full responsibility of homeownership, shared ownership could be suitable for you. 
 
Browse our new build homes across the UK, including 2, 3, 4 and 5 bedroom properties. They cater to all lifestyles, making them perfect for first-time buyers, growing families, older couples and young professionals. 
 
Contact our Sales Advisers today to start your homeownership journey.  
 
 
 
 

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