How do I save for a shared ownership property?
Are you hoping to step onto the property ladder but finding it tough to save a hefty deposit? Shared ownership could be the answer, making buying a home more accessible for many. Here’s how you can start saving for your dream home and why shared ownership is often a more accessible route for first-time buyers and growing families alike.
What is shared ownership?
Shared ownership allows you to purchase a share of a property (usually between 25% and 75%) and pay rent on the remainder. It’s a fantastic option if buying outright feels beyond reach. You only need to save a deposit for the share you’re buying, not the full market value, making it much more accessible compared to traditional home buying.
For a more in-depth look into the shared ownership model, visit our guide on How Shared Ownership Works.
What does that look like financially?
Let’s take a 4-bedroom family home at The Hops in central Dorchester, Dorset, as an example. The full market price of the property is £470,000, but with shared ownership, you can buy a share from as little as 25%. This means you could get started with a share priced as low as £117,500. If you wanted a larger 40% share, that would be £188,000. This lower initial outlay makes it much more achievable to get your foot on the property ladder.
Why do shared ownership deposits require less saving?
Since your deposit is only based on the percentage you’re buying, not the entire property price, the amount you need to save can be significantly less. For example, a 10% deposit on a 50% share of a £200,000 home means saving just £10,000, instead of £20,000 for full ownership. This lower barrier makes the path to home ownership less daunting and much quicker, especially for first-time buyers.
Top tips to save for your shared ownership deposit
Work out your budget
Use online calculators to see what you can afford and how much deposit you’ll need.
Open a dedicated savings account
Consider a Lifetime ISA (LISA) or another high-interest savings account designed for first-time buyers.
Assess your spending
Create a budget plan and look for areas to cut back, such as unused subscriptions or takeaways.
Automate your savings
Set up a monthly standing order into your savings account as soon as you’re paid to avoid the temptation of spending.
Boost your income
Take overtime at work, sell unwanted items or even start up a small side-hustle to increase your deposit fund.
How do I find shared ownership near me?
At Aster, we offer a wide range of shared ownership options in fantastic locations all over London & the South West. Whether you’re searching for a cosy apartment or a family home in the countryside, our properties are designed to suit different lifestyles and budgets. You can browse our available shared ownership homes to find the perfect fit for you, wherever you’d like to settle as you start your savings journey.
Ready to take the next step?
Saving for a deposit doesn’t have to be overwhelming. By taking advantage of the lower deposit requirement with shared ownership, setting clear goals, and automating your savings, you could be collecting the keys to your new home sooner than you think. If you’d like to know more, discover our available shared ownership properties and visit our shared ownership FAQs for commonly asked questions.
Ready to start your journey? Find out more about shared ownership and start planning for your new home with Aster today!
