Back to November 2019

Shared Ownership could save London renters more than 40k pounds in two years

House hunters using Shared Ownership to buy a share of a property rather than renting could more than £40,000 in just two years.

Analysis by Leeds Building Society found purchasing a 25% share of a £600,000 one-bedroom flat in Islington, with a £7,500 deposit, could save borrowers as much as £41,004* over a two year period, compared with the cost of renting a similar property on the open rental market (£3,900pcm) just a short walk away.

  Shared Ownership (25% share) Rental costs
Deposit £7,500 £4,500 (refundable)
Mortgage £736 per month £0
Rent £1,031 per month £3,900 per month
Service charge £112 per month £0
Total £1,879 per month £3,900 per month
2yr total £52,596 £93,600


As well as a potentially substantial saving on housing costs over two years, Shared Ownership buyers could also see the value of the 25% share in their home increase if London property prices rise.

They also have the option to increase the share of the property they own over time – known as staircasing – so could invest the money saved to buy a greater share of their home.

Matt Bartle, Director of Products at Leeds Building Society, said: “Shared Ownership celebrates its 40th anniversary this year and remains a cornerstone of affordable housing in the UK. The scheme has enabled thousands of people to step onto the property ladder and remains a viable option, particularly for first time buyers.

“Time and again, the challenge of saving up for a deposit is named as the biggest obstacle facing anyone wanting to buy their first home. However, our 95% borrower share mortgages require a deposit of 5% of the share borrowers are purchasing, rather than of the entire value of the property, significantly reducing the size of deposit required.

“Recent changes to the scheme have made it more accessible than ever, with the only key restriction that borrowers must have a household income of less than £80k (£90k in London). A consultation on changes to Shared Ownership, including measures to make staircasing easier for buyers, has also recently been completed.

“For many, Shared Ownership makes financial sense as it immediately reduces the size of a deposit, purchasers own a share of their home and can build up equity if they wish, while the monthly cost can be cheaper than an equivalent privately rented home.

”Leeds Building Society offers Shared Ownership mortgages as part of its wider affordable housing products. Highlights of the Shared Ownership range includes:

  • 3.19% two year Shared Ownership mortgage with 95% borrower share up to 75% LTV with a £1,499 fee
  • 5.59% two year Shared Ownership mortgage with 95% borrower share up to 75% LTV with a £999 fee
  • 3.79% two year Shared Ownership mortgage with 95% borrower share up to 75% LTV with no fee


Notes to Editors

*Illustration compares cost of renting a one-bedroom property in Islington currently (6 November) on the open market with purchase of a Shared Ownership property in the same area using Leeds Building Society’s 3.79% two year Shared Ownership mortgage with 95% borrower share up to 75% LTV with no fee.

To discuss a new case with one of our mortgage development team, mortgage introducers should go to to find details of their nearest Business Development Manager.

Leeds Building Society won the title of Best Shared Ownership Mortgage Lender in the 2019 What Mortgage Awards, its fourth consecutive year of success in this category. It also was named Best Lender for Later Life Lending in the Legal & General Mortgage Club Awards 2019.

The Society operates throughout the UK and had assets of £20.7bn at 30 June 2019 (£19.4bn at 30 June 2018). The UK’s fifth-largest mutual is a Best Companies 2* employer and its head office is in the centre of Leeds, where it has been based since 1886.