Why would shared ownership ever beat buying outright?

On net cost over a long stay, buying outright often wins — but it needs a far bigger mortgage and deposit than many people can get. Shared ownership lowers the monthly outgoing and the deposit needed to get in at all. Compare the 'monthly cost (year 1)' row, not just the net figure.

Does this include the rent and service charge?

Yes. The shared-ownership route adds rent on the share you don't own, the full service charge, and all the repairs on top of the mortgage on your share — the costs people most often forget.

Will the home ever be fully mine?

It can. With shared ownership you can 'staircase' — buy further shares over time, usually up to 100%, at the market price each time. This tool models a fixed share for the whole horizon, so it's a floor, not a ceiling.

Shared ownership vs renting vs buying calculator

See the real cost of a shared-ownership share against renting the same home and buying it outright — including the rent on the part you don't own, the service charge, and the repairs you'd cover. No sign-up.

Shared-ownership terms vary by provider and lease — treat this as a guide, then check the actual lease and full costs. Not eligibility or financial advice.

Buying outright costs least over 5 years

£41,877

Net cost of a 25% share vs renting the same home vs buying it outright, for the same deposit — lower is better. It's total cash out minus the equity you'd walk away with. Renting builds none; shared ownership also carries rent on the part you don't own, the service charge, and all the repairs.

Net cost — renting: £89,193
Net cost — shared ownership: £61,090
Net cost — buying outright: £41,877

How the three routes compare over your horizon
Over 5 years	Rent	Shared own.	Buy outright
Monthly cost (year 1)	£1,400	£1,249	£1,834
Total cash paid	£89,193	£94,016	£134,047
Equity at the end	£0	£32,927	£92,170

Assumptions & how it's worked out

Rent on the share you don't own is charged at 2.75% of its value a year, rising 2% a year (real leases vary — many link to RPI).
On the shared-ownership and buy routes you pay all repairs (1% of the full home value a year) — even on a part-share. Renters don't.
Buying costs assumed at 3% of the value bought (legal, survey, any SDLT); selling costs at 1.5%.
Home value grows 3% a year, market rent rises 3% a year, the service charge 3% — all assumptions, not forecasts.
The same cash deposit is applied to every route, and the return you might earn investing it instead is ignored.

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Questions, answered

Why would shared ownership ever beat buying outright?: On net cost over a long stay, buying outright often wins — but it needs a far bigger mortgage and deposit than many people can get. Shared ownership lowers the monthly outgoing and the deposit needed to get in at all. Compare the 'monthly cost (year 1)' row, not just the net figure.
Does this include the rent and service charge?: Yes. The shared-ownership route adds rent on the share you don't own, the full service charge, and all the repairs on top of the mortgage on your share — the costs people most often forget.
Will the home ever be fully mine?: It can. With shared ownership you can 'staircase' — buy further shares over time, usually up to 100%, at the market price each time. This tool models a fixed share for the whole horizon, so it's a floor, not a ceiling.

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