As the experts in all things Shared Ownership, we’d always advocate for buyers to pursue this avenue when looking to buy their first home (or a subsequent property, depending on your personal circumstances) if they’re unable to find a suitable property on the open market. It’s a reliable, proven method of getting on the property ladder for less than a private purchase could cost, and the wide variety of stunning new homes means there’s something for everyone. 

That said, there are other affordable homes schemes within the UK that you might choose to try. Let’s outline all of your available options, so you can make an educated decision on which avenue you’d like to go down. 

First Homes Scheme

The First Homes Scheme is an affordable housing scheme designed to help first-time buyers get on the property ladder sooner. It works by offering eligible homes to first-time buyers at 30% to 50% less than their market value. 

Homes built as part of this scheme will often be advertised by developers or estate agents under the First Homes Scheme banner, making it easier for buyers to filter through properties that they could purchase. Homes cannot cost more than £250,000 (or £420,000 in London), and every home that’s sold is valued by an independent surveyor to make sure its First Homes discount is based on the actual market value. 

Benefits

• Access to cheaper homes than are typically available
• Lower deposits needed due to lower purchase price
• Full ownership of your new home

Drawbacks

• Limited availability due to the scheme being quite new (June 2021) 
• Resale restrictions making it challenging to sell your property
• The First Homes Scheme cannot be combined with other schemes

Rent to Buy 

Rent to Buy is an affordable home ownership scheme that helps renters to seamlessly transition into homeownership. The process is relatively simple: you find a home that’s part of the scheme, then rent it from a landlord. After your initial tenancy agreement (typically 2 years), you’ll then have the opportunity to buy the property at a discounted price – often 20% below the market value. 

If you live in London, Rent to Buy isn’t available. Instead, you’ll be able to apply through a London affordable housing scheme known as London Living Rent. This operates similarly, but calculates rent at around one-third of household income (with adjustments made for the number of bedrooms in a property). 

Benefits

• You can live in your home while saving to purchase it
• Your tenancy agreement gives you a clear timeline to save money
• Any maintenance and repairs are covered while you’re renting

Drawbacks

• This scheme is restricted to new build properties
• If you choose not to buy, you’ll need to move out
• Your eventual purchase is based on current market rates, so it could have increased from what you initially expected

Right to Buy

The Right to Buy affordable homes scheme sounds very similar to Rent to Buy, but there are some differences worth noting. 

Primarily, Right to Buy is aimed at council tenants, giving them the opportunity to purchase their council home at a discount. The exact discount tenants can receive is based on factors like the type of property (flat, house etc.), the value of the home, and where in the UK it’s based. And if you then sell your home within 5 years, you’ll often need to repay the discount you were given. 

Other variables, such as whether your landlord has spent money maintaining your home during your tenancy, can also impact the size of the discount you receive. The government provides further information on this, but always speak to your landlord if you need guidance on your specific situation. 

Benefits

• Right to Buy can sometimes be the only realistic path to ownership for council tenants 
• The discount can be very high in certain situations, rising beyond £100,000 outside of London
• Tenants on the Right to Buy scheme may have a stronger sense of local identity than others 

Drawbacks

• Right to Buy depletes social housing stock, which could create long-term challenges in the UK 
• Former council homes are sometimes sold to private landlords after Right to Buy, significantly raising rents for future tenants
• You’ll still need to pay service charges for flats or apartments, as these are often leasehold