The UK faces a housing shortfall of 4.3mn homes, and while The Government's 1.5mn new homes target is a step forward, questions remain on how it will be achieved. With an increasing focus on social housing, shared ownership, a key homeownership pathway is under threat due to declining government grants and structural challenges, such as low staircasing rates (fewer than 3%) and affordability constraints.

As housing associations withdraw from shared ownership investment, private market solutions like rent to buy are emerging as alternatives. This model allows tenants to rent while saving for a deposit, offering fixed costs and greater financial clarity compared to shared ownership. Given the declining homeownership rates (down 33% among 25-34-year-olds since 2000) and the rising cost of retirees in rental housing (£15.4bn by 2035), supporting private initiatives is in The Government’s long-term economic interest.

While the private sector cannot solve the crisis alone, government backing through policies, investment incentives and incubators for new housing models can unlock scalable solutions and drive sustainable homeownership growth. A diverse range of ownership models, including mortgages, rent to buy and shared ownership, is essential to stimulate demand, boost housebuilding and reduce reliance on social housing.

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