Private Rent to Own vs Shared Ownership: Which Is Better for First-Time Buyers?

For many first-time buyers, the biggest hurdle isn’t paying a mortgage, it’s saving the deposit to get one. Between high rents, inflation and tighter lending criteria, it’s easy to feel stuck in the middle: earning enough to buy, but unable to save enough to start.

That’s why alternative homeownership models such as private rent-to-own and Shared Ownership have become so popular. Both aim to make buying more achievable, but they work in very different ways. Here’s how they compare, and how a private rent-to-own option like keyzy.com stacks up against Shared Ownership.

What is private rent-to-own?

Private rent-to-own bridges the gap between renting and buying. You move into a home now, rent it for a fixed term, and then buy it at a pre-agreed price using the rent you’ve paid as part of your deposit.

Keyzy’s model is a leading example in the UK. It’s designed for renters who can comfortably afford monthly housing costs but haven’t yet built a large enough deposit.

Here’s how it works:

• You apply through Keyzy and choose from Keyzy-owned homes in West London, Southall, Hayes, or Harrow.
• Keyzy buys and manages the property, and you move in as a tenant for a fixed two-year term.
• Your rent is fixed for the full term, so no annual increases or surprises.
• Every rent payment counts towards your deposit when you buy.
• The purchase price is locked when you move in, so you know exactly what it will cost at the end.
• When you’re mortgage-ready, you buy the home using the deposit credit you’ve built up.

In short: rent now, buy later and make your rent work for you in the process.

What is Shared Ownership?

Shared Ownership is a government-supported scheme that lets you buy part of a home and pay rent on the rest. Over time, you can “staircase”, buying additional shares until you own more or all of the property.

It’s available through housing associations and registered providers, and typically looks like this:

• You buy an initial share, usually between 10% and 75% of the property’s value.
• You pay a mortgage on that share, plus subsidised rent on the portion you don’t own.
• You can buy further shares later (staircasing), often in 5% or 10% increments.
• Most homes are new builds, though some resales exist.
• You pay service charges, which cover communal upkeep and building insurance.

Comparing private rent to own and Shared Ownership

Advantages of Keyzy’s private rent-to-own

• No deposit needed upfront - move in now, build equity while renting.
• Price certainty - your future purchase price is fixed, protecting you from market spikes.
• Rent becomes your deposit - every payment builds equity rather than disappearing. For example, after two years of paying £1,800 per month, you would have contributed £43,200 toward owning your home, instead of just paying rent with nothing to show for it.
• Simpler budgeting - one fixed payment, no separate rent and mortgage combination.
• Fast route to ownership - typically two years, not decades.

Private rent-to-own, like keyzy.com, works best for people who can afford rent now but need time to reach mortgage eligibility, without losing money to rent in the meantime.

Advantages of Shared Ownership

• Lower initial deposit - you can get started with a smaller share.
• Access to new-build homes - many are high-efficiency and modern.
• Gradual ownership - staircasing allows you to increase ownership when ready.
• Government backing - regulated framework and consumer protection standards.

However, Shared Ownership also comes with some complexities:

• You pay rent, service charges and a mortgage at the same time.
• Staircasing costs and valuations can add up.
• Reselling can be slower or restricted, especially before full ownership.
• You may not have total control over property alterations or letting rules.

Which option suits you?

The main differences at a glance

• Private rent-to-own is simple: you rent the home you’ll buy later. Your rent builds your deposit, your price is fixed, and your path is clear.
• Shared Ownership divides ownership from day one, mixing mortgage and rent. It’s a slower journey but gives you partial ownership immediately.

Both aim to make buying a home achievable they just take different routes.

What to consider before choosing

• Your finances - do you have savings ready, or do you need time to build them?
• Your stability - can you commit to a two-year plan (Keyzy) or do you need flexibility over time (Shared Ownership)?
• Your long-term goals - are you aiming for full ownership quickly or happy with a gradual increase?

The bottom line

Both private rent-to-own and Shared Ownership aim to make homeownership more accessible. The difference lies in how you get there.

If you want to rent with purpose, build your deposit automatically, and have a clear two-year plan to buy your home, Keyzy’s private rent-to-own is designed for you.

If you prefer a slower, more traditional route with smaller upfront costs and don’t mind managing both rent and mortgage payments, Shared Ownership may be more suitable.

Either way, the message is the same there are now more ways than ever to own your home.