Buy a share of your home and pay rent on the rest. Shared ownership makes homeownership more affordable for first-time buyers and those on lower incomes.
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Shared ownership is a government scheme that allows you to buy a share of your home (between 25% and 75%) and pay rent on the remaining share. You can buy additional shares over time through a process called 'staircasing'.
Purchase between 25% and 75% of your home initially, with the housing association owning the remaining share.
Pay subsidised rent on the share you don't own, typically at a reduced rate compared to market rent.
Buy additional shares over time to increase your ownership percentage, eventually reaching 100% ownership.
Shared ownership is designed to help first-time buyers and those on lower incomes get onto the property ladder. There are specific eligibility criteria you must meet.
You must be a first-time buyer or someone who previously owned a home but can no longer afford to buy one.
Your household income must be less than £80,000 per year (£90,000 in London) to be eligible for the scheme.
The property must be your main residence and you cannot own any other property when you buy through shared ownership.
You must be able to afford the mortgage payments, rent, and service charges associated with the property.
Understanding the process helps you prepare for your shared ownership application and know what to expect.
Applying for shared ownership involves several steps, from finding a property to completing your purchase:
Shared ownership offers several advantages, but it's important to understand both the benefits and potential limitations.
You only need a deposit on the share you're buying, making it more affordable to get onto the property ladder.
Your monthly payments (mortgage + rent) are typically lower than buying the full property or renting privately.
You can gradually increase your share through staircasing, eventually owning 100% of the property.
Shared ownership properties are limited and often in specific developments, reducing your choice of location.
Rent on the share you don't own can increase annually, affecting your monthly outgoings.
There are restrictions on selling your share, and the housing association has first refusal to buy it back.
Understanding all the costs involved helps you budget properly and avoid any surprises during the process.
Upfront costs you'll need to pay when buying your shared ownership property.
Regular monthly and annual costs you'll need to budget for.
Additional costs when you buy more shares in your property.
Get expert advice on whether shared ownership is right for you. Our qualified Advisers can help you understand the scheme and find suitable properties.