Looking for a way onto the property ladder without paying the full price? Part‑buy part‑rent, also called shared ownership, lets you own a slice of a home while renting the rest. It’s a mix of buying and renting that can cut the amount you need for a deposit and reduce your monthly payments.
You buy a share – usually 25% to 75% – of a property from a housing association or developer. The remaining share stays with the provider, and you pay rent on that part. Your mortgage covers the share you own, and the rent you pay is calculated on the percentage you don’t own.
As your finances improve, you can buy more shares, a process called “staircasing.” Each time you increase your share, the rent you pay goes down. Eventually you could own 100% of the home, but you’re not forced to go that far if you’re happy with a smaller share.
Part‑buy part‑rent is a good fit if you have a steady income, can get a mortgage for the share you want, and plan to stay in the property for a few years. It’s especially useful for first‑time buyers, families who need more space, or anyone priced out of the open market.
Things to watch out for: the rent on the unsold share can increase over time, and there may be restrictions on selling your share – you often have to offer it back to the housing provider first. Also, you’ll still need to cover service charges, maintenance, and insurance for the whole building.
Before you jump in, compare the total monthly cost (mortgage + rent + fees) with what you’d pay for a full‑price mortgage. Use a shared ownership calculator to see if the numbers work for you.
When you find a property, the steps are straightforward: 1) Check eligibility – most providers require a certain income level and that you’re not already a homeowner. 2) Get a mortgage agreement in principle for the share you want. 3) Apply to the housing association, who will assess your application and the property. 4) Once approved, sign the lease and mortgage contracts, pay your deposit, and move in.
Remember, you can always talk to a mortgage advisor or a property agent familiar with shared ownership. They can help you figure out the best share size and guide you through the paperwork.
Part‑buy part‑rent isn’t a gimmick; it’s a practical way to own a home sooner and with less financial strain. If you’re ready to start your property journey, explore listings that mention shared ownership or ask an agent to filter for part‑buy part‑rent options.
