What Is Shared Ownership?
Shared Ownership is a government-backed affordable homeownership scheme that allows you to buy a percentage share of a residential property — typically between 10% and 75% — and pay a subsidised rent to a housing association on the share you do not own. Over time, you can purchase additional shares through a process called staircasing until you own the property outright.
The scheme is designed to bridge the gap between renting and full homeownership, particularly for first-time buyers who cannot yet afford to buy a suitable property on the open market. Instead of needing a deposit on the full property price, you only need a deposit on your purchased share, making it far more accessible.
Shared Ownership properties are typically offered by housing associations, local councils, or other registered providers. They are generally leasehold properties, which is an important consideration when comparing Shared Ownership against outright purchase.
The New Shared Ownership Model (from April 2021)
In April 2021, the government introduced a revised Shared Ownership model for all new homes built under the Affordable Homes Programme. Key changes include:
- Minimum share reduced to 10% (previously 25%), making it more accessible to lower-income buyers.
- Staircasing in 1% increments each year, rather than requiring larger tranches of 10–25%.
- Landlord responsible for repairs for the first 10 years (for new model properties), covering essential repairs up to £500 per year.
- Rent capped at 3% of the unsold equity (previously typically RPI+0.5%).
Older Shared Ownership properties built before April 2021 operate under the previous rules, so always check which model applies to a specific property.
Shared Ownership Monthly Cost Estimator
Enter the full property price and your intended share to estimate your monthly mortgage payment and rent. Uses indicative figures for illustration only.
Eligibility for Shared Ownership
To qualify for Shared Ownership in England, you must meet the following criteria:
- Your household income must be £80,000 or less per year (£90,000 or less in London).
- You must be a first-time buyer, or a previous homeowner who no longer owns a home.
- You must be unable to afford a home that meets your needs on the open market.
- You must be a UK resident (or have indefinite leave to remain).
- You must not currently own another property — you cannot use Shared Ownership to purchase a second home.
Some providers prioritise applicants with a local connection, or those who are existing social housing tenants. Priority may also be given to people with disabilities or those on the armed forces housing register.
Shared Ownership is available to people aged 55 and over through a slightly different product called Older People's Shared Ownership (OPSO), which limits the maximum share purchase to 75% (meaning you always pay rent on at least 25%).
How Shared Ownership Works: Step by Step
- Register with a Help to Buy agent (in England) or search via Share to Buy or Homes England for available properties.
- Choose a property and confirm the share available for purchase.
- Get a mortgage in principle from a lender experienced in Shared Ownership mortgages.
- Apply to the housing association and pass eligibility checks.
- Pay a reservation fee (typically £200–£500).
- Appoint a solicitor familiar with Shared Ownership conveyancing.
- Complete surveys and valuations.
- Exchange contracts and complete — you move in and start paying your mortgage plus rent.
Staircasing: Buying More Shares
One of the most important features of Shared Ownership is the ability to buy additional shares over time — a process called staircasing. The key points are:
- Under the new 2021 model, you can buy shares in 1% increments annually (sometimes called "gradual staircasing").
- Larger staircasing steps (e.g. 10–25%) are also possible and may offer better value due to reduced legal fees per transaction.
- Each additional share is purchased at the current market value, not the original price — so if property values have risen, additional shares cost more.
- A RICS surveyor must value the property before each staircasing transaction.
- Once you own 100%, you become the outright owner and pay no more rent.
- Once you own 80% or more, you can buy the freehold if available.
Costs to Budget For
One-Off Purchase Costs
- Reservation fee: £200–£500 (often non-refundable)
- Survey / valuation: £300–£700
- Legal fees (solicitor): £1,500–£3,000 (Shared Ownership conveyancing is more complex than standard purchases)
- Stamp Duty Land Tax (SDLT): You can choose to pay on the full market value upfront, or only on your share — if you choose the latter, SDLT becomes payable again when you staircase past 80%.
- Mortgage arrangement fee: £0–£2,000 depending on product
Ongoing Monthly Costs
- Mortgage repayments on your purchased share
- Rent: Subsidised, typically around 2.75–3% of the unsold equity per year (under the new model, capped at 3%)
- Service charge: For flats especially — can range from £100–£400+/month, covering communal area maintenance
- Ground rent: Often £0–£250/year for properties sold under Shared Ownership (new leases post-2022 typically have zero ground rent)
- Buildings insurance: Arranged by the housing association (included or as a charge) — you arrange your own contents insurance
- Maintenance fund: You are responsible for internal repairs and maintenance, even on shares you don't own (except under the new 10-year repair clause)
Advantages of Shared Ownership
- Lower deposit required: You need only 5–10% of your share value, not the full property price. On a £300,000 property with a 40% share (£120,000), a 10% deposit is just £12,000.
- Get on the property ladder sooner: Particularly useful in high-cost areas such as London and the South East.
- Below-market rent: The rent paid to the housing association is typically lower than open market rents.
- Flexibility to buy more: Staircasing lets you gradually increase your stake as your finances allow.
- Mortgage tax relief equivalent: You benefit from property value growth on the share you own.
Disadvantages of Shared Ownership
- Leasehold complexities: Most Shared Ownership homes are leasehold. Short leases can make mortgaging difficult; extending a lease is costly.
- You need landlord permission for alterations: Structural changes, extensions, and often even decorating alterations may require housing association consent.
- Selling can be complex: The housing association typically has a nomination period of up to 8 weeks to find a buyer. You can only sell your owned share, which may limit the market.
- Service charges can be high and rise unexpectedly: Major works on the building can result in large one-off charges.
- Mortgage market is narrower: Fewer lenders offer Shared Ownership mortgages, though the market has improved.
- Price rises affect staircasing: If property values increase significantly, buying additional shares becomes more expensive.
- You still pay for repairs even on the share you do not own (with limited exceptions under the new model).
Shared Ownership vs Renting vs Buying Outright
| Factor | Renting | Shared Ownership | Buying Outright |
|---|---|---|---|
| Deposit needed | 1–2 months rent | 5–10% of share | 5–20%+ of full price |
| Monthly cost | Rent only | Mortgage + rent + service charge | Mortgage only |
| Build equity | No | Yes (on owned share) | Yes (full amount) |
| Property value gains | No | Partial (% owned) | Full |
| Flexibility | High | Limited (nomination period) | Full |
| Alterations | Usually no | Permission required | Full control |
| Responsibility for repairs | Landlord (structural) | You (with limited exceptions) | Fully you |
Finding Shared Ownership Properties
The main ways to find Shared Ownership homes in England include:
- Share to Buy (sharetobuy.com) — the largest dedicated Shared Ownership property portal
- Homes England Help to Buy agents — regional agents who manage allocation for government-funded schemes
- Housing association websites — most large associations (Clarion, L&Q, Peabody, etc.) list their available properties directly
- Rightmove and Zoopla — include Shared Ownership listings in their search filters
Shared Ownership in Scotland, Wales and Northern Ireland
Shared Ownership as described above is primarily an England scheme. The devolved nations have their own equivalents:
- Scotland: The Low Cost Initiative for First Time Buyers (LIFT) includes two schemes: the Open Market Shared Equity (OMSE) scheme and the New Supply Shared Equity (NSSE) scheme.
- Wales: The Shared Ownership Wales scheme operates similarly to England, administered by Welsh local authorities and housing associations.
- Northern Ireland: The Co-Ownership Housing Association runs a shared ownership scheme.