Affordable Housing Alternatives in the UK

With traditional renting increasingly unaffordable, many people are exploring alternative housing options. From property guardianship to housing cooperatives, this guide covers the main alternatives available in the UK.

Property Guardianship

Property guardianship offers accommodation at 30-50% below market rent in exchange for providing security to empty buildings.

Pros

• Significantly lower costs
• Unique living spaces
• Flexibility
• Lower barriers to entry

Cons

• Less security of tenure
• Fewer legal rights than tenants
• May need to move at short notice

Learn more about property guardianship

Housing Cooperatives

Housing co-ops are run by their members who collectively own and manage the properties.

Types of Co-ops

• Fully mutual: Members own no equity, rents stay low
• Ownership co-ops: Members own shares in the property
• Tenant management: Tenants run but don't own

Advantages

• Democratic control over housing
• Often below-market rents
• Strong community
• Security of tenure

Challenges

• Limited availability
• Long waiting lists
• Requires active participation

Community Land Trusts

CLTs are community-owned organisations that hold land to provide permanently affordable housing.

How They Work

• Community owns the land
• Residents own or rent the buildings
• Restrictions ensure long-term affordability
• Democratic community governance

Benefits

• Permanently affordable housing
• Community ownership and control
• Stability and security

Shared Ownership

Part-buy, part-rent schemes allowing gradual ownership.

How It Works

• Buy a share (typically 25-75%)
• Pay rent on remaining share
• Can "staircase" to full ownership
• Often through housing associations

Eligibility

• Household income under £80,000 (£90,000 in London)
• First-time buyers or previous owners who can't buy now
• Must not already own a home

Rent to Buy

Schemes offering reduced rent to help save for a deposit.

Features

• Rent at 80% of market rate
• Difference helps build deposit
• Option to buy after rental period
• Usually 5-year rental period

Living with Family

Returning to live with family is an increasingly common choice.

Statistics

• 25% of young adults live with parents
• Rising trend over past 20 years
• Enables saving for deposits

House Sharing

Sharing with flatmates remains a key affordability strategy.

Options

• SpareRoom: Finding rooms and flatmates
• Lodging: Renting a room in someone's home
• HMOs: Licensed shared houses

Comparison Table

Option	Cost Savings	Security	Availability
Property Guardianship	High (30-50%)	Low	Moderate
Housing Co-op	Moderate	High	Low
Community Land Trust	Moderate	High	Low
Shared Ownership	Moderate	High	Moderate
House Sharing	Moderate	Moderate	High