Beyond monthly affordability: why shared ownership remains an important solution for deposit-constrained borrowers

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Alasdair McDonald | Head of Mortgage Distribution

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15 September 2026

Mortgage affordability has dominated industry discussion over recent years. Yet for many first-time buyers, the biggest obstacle isn't passing an affordability assessment. It's saving the deposit required to enter the market in the first place.

It's an understandable focus. Interest rate movements, cost-of-living pressures and mortgage stress testing have all shaped lending discussions, and ensuring borrowers can sustainably afford home ownership remains fundamental to good customer outcomes.

According to Halifax, the average first-time buyer put down a deposit of £61,090 in 2024, while the average first home cost £311,034.¹ For many customers, particularly those balancing rental commitments with rising household costs, accumulating a deposit of that size can feel increasingly difficult.

The scale of the challenge is reflected in research from Nationwide Building Society, which found that a typical first-time buyer would need nearly six years to save a 10% deposit on an average UK property.²

Against that backdrop, it is perhaps unsurprising that many prospective buyers view home ownership as being beyond their reach.

Looking beyond traditional affordability measures

As advisers, we often focus on borrowing capacity, loan-to-income ratios and monthly affordability calculations. These remain important considerations, but they do not always tell the full story.

Many prospective buyers can demonstrate a strong history of paying rent, managing household finances and maintaining stable incomes. Yet some still struggle to build the level of savings required for a traditional house purchase.

In practice, this creates a disconnect between a customer's ability to sustain mortgage repayments and their ability to save a sizeable deposit.

Recognising that distinction is important because it opens the door to conversations about alternative routes into home ownership that may otherwise be overlooked.

What our data tells us

At the West Brom, we continue to support a wide range of first-time buyers, including those purchasing through shared ownership. When analysing our customer data, one statistic stood out.

Internal data from the West Brom shows that during 2025, the average deposit paid by a shared ownership first-time buyer was 58% lower than the average deposit paid by our other first-time buyers.

While shared ownership is not always the right solution for every borrower, that figure highlights the impact that different purchasing routes can have on the deposit challenge.

For some customers, the question is not whether they can afford home ownership in the long term, but whether they can overcome the initial savings hurdle needed to access it.

Shared ownership's growing role

Shared ownership has existed for many years, but awareness and understanding of the scheme continue to improve among both consumers and advisers.

For many buyers, it provides an opportunity to purchase an initial share of a property while paying a subsidised rent on the remaining share. By reducing the level of borrowing and deposit required at the outset, it can create a more accessible pathway into home ownership.

Importantly, shared ownership should no longer be viewed as a niche solution. It has become an established part of the home ownership market and continues to provide a valuable bridge between renting and home ownership for many borrowers.

Addressing common misconceptions

Despite growing awareness, there are still areas where education remains important. One of the most persistent misconceptions is that shared ownership is a fixed end point rather than part of a longer-term home ownership journey.

In reality, many customers value the flexibility available through staircasing, which enables homeowners to purchase additional shares in their property over time as their financial circumstances allow.

Not every customer will choose to staircase, and full ownership may not be every homeowner's objective. However, understanding how staircasing works allows advisers to have more informed conversations and helps address concerns that can arise during the advice process.

An opportunity for advisers

In an environment where affordability pressures persist, advisers have an important role to play in ensuring customers understand the full range of options available to them.

That means looking beyond traditional purchasing models and exploring whether alternative routes to home ownership may be appropriate for particular client circumstances.

For customers who are mortgage-ready but deposit-constrained, shared ownership can offer a practical solution worth considering. The earlier these conversations take place, the greater the opportunity to help clients understand what may be achievable both now and in the future.

Ultimately, monthly affordability will always remain a key part of responsible lending and advice. But if we want to support the next generation of homeowners, we should ensure the affordability conversation is broad enough to recognise the reality many first-time buyers face.

For a significant number of aspiring homeowners, the biggest obstacle is not sustaining mortgage repayments. It is building the deposit required to achieve home ownership in the first place.