5 Alternative Ways to Buy a Home in the UK

For many people, the dream of owning a house seems impossible in todays market, especially on a solo income. This article will look at alternative ways you can achieve buying a home

In the 1960s, it was possible for a couple to buy a home, raise a family and enjoy a comfortable lifestyle, all on one salary. In 2022, owning a home is increasingly out of reach for a huge number of people in the UK due to soaring property prices and the need to raise an eye-watering amount of money as a deposit. 

These challenges often lead people to seek non-traditional methods of getting on the property ladder. Shared ownership conveyancing has become big business in recent years, as this home buying model tends to be cheaper than the usual method.

There’s plenty where that came from, so let’s delve into more detail about alternative ways to own a house, here…

5 Alternative Ways to Buy a Home

Shared Ownership

Shared ownership has helped over 200,000 UK couples and families realise their dream of home ownership, and can make a great alternative to traditional routes. With this model, you buy part of a property and rent the rest from a housing association. 

As your income grows, you may purchase more shares in the property until you own 100 percent, or sell your shares at any time. This makes it ideal for first time buyers who are struggling to even get their first foot on the property ladder. 

Although this can be an economical way of owning a home, you’ll need to read the terms and conditions carefully. You will usually need to adhere to some rules regarding what you can and can’t do with the property, such as decorating the exterior.  

Buy a Home at Auction

Property auctions can be a great way of bagging some bricks and mortar at rock bottom prices. In fact, this is such a popular method of buying property, that around 1.3 percent of all of the houses sold in the UK are purchased this way. 

How does it work? Search the internet for properties in your local area and then obtain an ‘after’ valuation. You can usually bid on the property in person, by telephone or online for convenience.

Property auctions can be a really good solution for those who are unable to raise the funds to buy in the traditional way. However, you do need to prepare yourself for the fact that somebody may outbid you on your dream home.

Help To Buy

Introduced in 2013, Help To Buy is a scheme created by the UK government to help those on lower incomes to buy a home. For those who qualify, this scheme allows them to buy a home with a deposit of just 5 percent.

The government will also lend 20 percent of the cost of the property (or up to 40% in London) to help to reduce the mortgage payments. This, therefore, gives people a better chance of being accepted for a mortgage in the first place. 

This loan is interest free for five years and, after this period, it’s charged at 1.75 percent. Although this popular scheme makes property buying more affordable, you should note that the amount you owe is not fixed, and that your loan will become more expensive over time.

Start From Scratch and Build Your Home

While it may not be for everyone, choosing to build your own home can significantly reduce costs. This occurs with the added bonus that you end up with a home which is tailored to your needs and personality. 

To do this, you’ll need to first find a suitable plot, which you can find on sites such as Plot Finder or in local estate agents. You’ll also need to secure funding either through savings or a self-build mortgage, as well as finding people to construct the property, unless you intend to do so yourself.

Self builds are becoming increasingly popular in the UK. However, you need to be prepared for bumps in the road, such as delays and material shortages, before you finally get to move into your shiny new home.

Buy With a Friend

Single people can struggle with the costs of buying a home, as this is a pretty tall order on just one salary. One way around this is to buy a property with a friend or family member. 

How this works is pretty simple; the two of you go halves on the deposit and then secure a joint mortgage and divvy up the repayments and bills between you. This can be the perfect solution, and is something which has worked well for many people.

However, you’ll need to make sure that the friend is somebody that you’re confident that you can comfortably live with. You may also want to consider drawing up a contract between you outlining what will happen if one of you wants to sell up and move out, in order to avoid conflict.

Don’t Lose Hope in Owning Your Dream Home…

These days, there are a few different ways in which those with low incomes and those unable to raise a deposit can buy themselves a home.

As we’ve outlined in this article, there are some really viable solutions out there to help you get that all important step on the property ladder. As we’ve also demonstrated, these solutions, like most things, come with the odd drawback, so you should always think carefully before committing to such a major project.

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained finance professional. Be sure to consult a finance or conveyancing professional if you’re seeking advice about buying your first home. We are not liable for risks or issues associated with using or acting upon the information on this site.