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Shared ownership is an affordable home ownership scheme introduced to help first-time buyers get on the property ladder. Discover what shared ownership is and how the scheme works, as well as key things to consider before you apply.
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We know every penny counts when you're buying your first home. That's why we're giving first-time buyers £100 off their legal fee — one less cost to worry about as you get ready for the big move.
Once you've got your quote, simply call our Move Specialists on 0333 234 4425 and they can apply your £100 discount for you. Alternatively, book a call and they'll call you back at a time that suits you.
*Subject to Terms and Conditions. Offer ends 31.10.26
Shared ownership is an affordable home ownership scheme that allows you to purchase a property portion, with an initial share of between 25% and 75%. You get a mortgage for the share you can afford, and then pay rent on the remaining portion that belongs to the housing association.
Shared ownership enables you to choose from a variety of homes across the UK – including new builds and resale properties.
After you’ve bought the property with your initial share, you can buy additional shares until you gain full ownership. This is called staircasing.
Eligibility varies depending on the property size and the local authority criteria. However, you need to meet the following requirements:
Your household earns less than £80,000 per year (£90,000 if you live in London).
You can’t afford the deposit and mortgage payments for a home on the open market.
One of the below must also be true:
You’re a first-time buyer.
You used to own a home but can’t currently afford to buy one.
You’re forming a new household.
You’re an existing shared owner and you want to move.
You own a home and want to move but cannot afford a new one that meets your needs.
Explore the advantages and disadvantages of the scheme to decide if it’s right for you.
You can easily get on the property ladder and own at least part of your home.
You pay rent on a property that you could eventually fully own.
Rent payments are typically lower than renting privately, often around 2.75% of the property's value annually.
You can sell your share anytime, meaning you could benefit if your home’s value has increased.
Deposits are typically lower than when buying on the open market, and mortgages are more accessible, even if you’re on a low income.
Low-income individuals generally find it easier to secure a mortgage due to the reduced loan amounts required.
Flexibility in paying Stamp Duty Land Tax, either up front or in phases as you increase your ownership stake.
More security during staircasing compared to private renting, with the option to own the property outright.
The chance to buy the freehold once you own 100% of the property.
You can choose not to staircase, minimizing exposure to property market fluctuations.
No matter your share, you must pay 100% of any ground rent and service charges.
You might struggle to gain full ownership of the property if its value increases.
You’re not allowed to sub-let your home and there might be restrictions on what alterations you can make on the property.
Selling your shared ownership property can be more complicated than a traditional sale.
The smaller share you own, the less you gain from property appreciation.
Finding a lender for shared ownership mortgages can be more difficult, although the situation is improving.
Staircasing costs can add up over time, involving multiple deposits and associated fees.
If house prices rise, the cost per share increases during staircasing.
Selling might require offering the property back to the housing association initially, complicating the process despite owning a substantial share.
You’ll need to pay your mortgage, rent and a service charge every month. This may seem a lot, but keep in mind that rent payments are usually more affordable than renting on the open market.
Here’s a breakdown of the costs:
The rent level is set by the housing association, but generally the annual rent is no more than 3% of the share that you don’t own. The amount of rent will therefore reduce when you buy additional shares.
For example, if you bought a 50% share of a £200,000 property, you’ll have to pay rent for the other 50% share that belongs to the housing association. This means you would pay rent on the £100,000.
The housing association will charge rent of 3% of this amount, which equals £3,000 per year and £250 per month. Remember, this amount will be payable in addition to the mortgage on the 50% that you own.
Your housing association will usually have a rent review process, meaning your rent can go up. They should let you know how they calculate an increase so you can budget for the future.
Your monthly mortgage repayments will be based on the value of your purchased share, deposit, interest rate and remaining length of your mortgage deal. Find out how to get a mortgage.
These are payments you need to make to the housing association for services – such as maintenance and repair of communal areas, as well as management of the accommodation. The amount will vary depending on things like the type of property, number of communal areas, and your housing provider.
Selling your shared ownership home can be more complex than a standard sale. The process is practically the same, however because the housing association still own a percentage of the house, you must give them the option of buying it, or finding a buyer, before you can put it on the market.
As the housing association still own a percentage, they have a nominated period where they have the option to try and find a buyer before you can put it on the market yourself. If they find a buyer, your share will be sold at no more than the current market value, which is specified by a RICS surveyor.
For most house purchases you can have a house deposit as little as 5% and this is no different why buying a shared ownership home. The difference is that because you are only buying a percentage of the home, your mortgage will be smaller, and therefore your deposit can be smaller too.
For example, if you buy a 50% share of a property valued at £200,000, you would need to save £5,000 for a 5% deposit. Find helpful tips on how to save for a deposit.
Not sure if shared ownership is for you? You can get financial help from the government through other affordable home ownership schemes. For example, if you’re a first-time buyer, you can benefit from a new-build home loan. Find out more about other first time buyer schemes.
Shared ownership is an affordable home ownership scheme introduced to help first-time buyers get on the property ladder. Discover what shared ownership is and how the scheme works, as well as key things to consider before you apply.
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