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Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.

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Myth busters - is shared ownership more expensive than renting?

In the third of our series exploring the myths surrounding shared ownership we discuss what the true price of shared ownership is and whether monthly repayments on these properties are really more expensive than renting.

It may seem logical that the monthly repayments on shared ownership properties would fall somewhere between those paid for a full mortgage and those paid for rent. However in reality, monthly payments for shared ownership properties are in many cases lower than either full ownership or private renting. A report by the National Housing Federation found that the average shared ownership monthly payments were lower than rent or full ownership[1] in all regions of the UK except the North East, making it an attractive choice for those who would like to get on the housing ladder but who can’t buy a suitable property on the open market.

More importantly though, a buyer’s monthly repayments on a shared ownership property are also contributing to paying off their mortgage as well as paying their rent, meaning that owner occupiers are building up equity that would be non existent if they were only renting the property.

Despite this, buyers may not be comfortable with part owning a property forever, however cost effective it may be in the long term. A key feature of shared ownership is the option for people to increase the share of the property that they own, called ‘staircasing’. This could lead to them eventually owning their property outright, which could make shared ownership an ideal long term solution for those who want to eventually own their own home, but who do not have the means to own one outright in their current situation.

To find out more about the products available from Leeds Building Society and shared ownership call our business development team on 0113 2257722.

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[1] Most recent data -