Are Part Buy-Part Rent Schemes a Good Thing?

Part Buy-Part Rent schemes often referred to as ‘Shared Ownership’, the approach being that a share in the equity of the property is purchased with the inhabitant paying rent for the balance to housing association, local authority or in some cases the property developer. The occupier normally reserves the right to buy the rented share thus gaining outright ownership.


These schemes are designed mainly to help first-time buyers take their first step on to the housing ladder, sadly the economic conditions have seem reduction in home values leaving many trapped, unable to sell or move.

A recent study by Cambridge University into the effectiveness of Part Buy / Part Rent schemes reports that mobility out of the sector is poor.

Many who bought into the market are now in negative equity, and cannot afford to take a loss on extricating themselves. Demand from new buyers into part-buy / part-rent has also proved low, and the report also highlights mortgage difficulties.

The Cambridge University report concludes that out of 145,000 shared ownership properties sold since 2001; just 27,908 have ‘staircased’, the term used for increasing the ownership share, to full ownership.


Part-Buy / Part-Rent can work out well and has done for many thousands of individual and families as it has proves new good quality accommodation as well as a root to outright ownership whilst providing an affordable home ownership solution.


Martin Cunningham MNAEA

Commercial Director – homes24


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