What is Shared Ownership?
Shared Ownership is a government scheme that helps people buy a home with a smaller deposit and mortgage. You buy a share of the property (between 25% and 75%) and pay rent on the remaining share owned by a housing association. You can increase your share over time through a process called "staircasing".
2025 Scheme Benefits
Lower deposits from just 5% of your share | Reduced monthly costs vs full ownership | Ability to buy additional shares over time | Available across England for new build and existing properties
How Shared Ownership Works
Your Share (25-75%)
You own this portion
You get a mortgage for this
You pay a deposit on this
Housing Association (25-75%)
Housing association owns
You pay rent on this
No mortgage needed
Financial Example
£400,000 Property - 50% Shared Ownership
Your 50% share: £200,000
Your deposit (5%): £10,000
Your mortgage: £190,000
Monthly mortgage payment: ~£950
Monthly rent (2.75% of £200k): ~£458
Total monthly cost: ~£1,408
Eligibility Requirements
Who Can Apply?
Household Income
Must be £80,000 or less per year (£90,000 in London boroughs).
First-Time Buyer
Must be a first-time buyer or not currently own another property.
Mortgage Qualification
Must be able to secure a mortgage for your share and afford the rent.
Local Connection
Priority often given to those with local connections to the area.
Priority Groups
- Social housing tenants: Current social housing tenants get priority
- Armed forces personnel: Serving or former armed forces members
- Key workers: Teachers, nurses, police officers in some areas
- Local residents: People who live or work locally
- Disabled applicants: Priority for wheelchair accessible properties
Types of Shared Ownership
Standard Shared Ownership
Most Common Type
Buy 25-75% of any eligible property. Available for new builds and existing shared ownership properties being resold. Standard rent rates and staircasing options apply.
Older Persons Shared Ownership
| Standard | Older Persons (55+) | Key Differences |
|---|---|---|
| 25-75% initial share | 10-75% initial share | Lower minimum share available |
| Can staircase to 100% | Can staircase to 75% | Cannot achieve full ownership |
| No age limit | Must be 55+ when applying | Age restriction |
| Standard service charges | May include additional services | Retirement-specific features |
Shared Ownership with Relatives
- Joint applications: Can apply with family members or partners
- Combined income: All applicants' incomes count toward limits
- Shared responsibility: All parties responsible for mortgage and rent
- Exit complications: More complex when relationships change
Costs Breakdown
Upfront Costs
Deposit
5-10% of your share value (not the full property value).
Legal Fees
£1,000-£2,000 for conveyancing and legal work.
Valuation & Survey
£400-£1,000 for mortgage valuation and property survey.
Moving Costs
£500-£2,000 for removals and immediate setup costs.
Monthly Costs
| Cost Type | Typical Amount | Notes |
|---|---|---|
| Mortgage Payment | £600-£1,500 | Based on your share and mortgage rate |
| Rent | £300-£800 | Usually 2.75% annually of housing association share |
| Service Charge | £50-£300 | Maintenance, insurance, and communal areas |
| Council Tax | £100-£400 | Based on property band and location |
Calculate Your Shared Ownership Costs
Use our calculator to see monthly costs for different share percentages and property values.
Shared Ownership CalculatorStaircasing - Buying More Shares
How Staircasing Works
Staircasing Process
Initial Purchase
Buy your initial share (25-75%) and start living in the property.
Wait Period
Usually must wait 12 months before first staircasing purchase.
Property Valuation
Independent valuation determines current market value for share calculation.
Purchase Additional Share
Buy additional 10% minimum increments up to 100% (75% for older persons).
Staircasing Benefits
- Reduced rent: Lower monthly rent as housing association share decreases
- Capital appreciation: Benefit from full house price increases on your share
- Full ownership: Eventually own 100% and eliminate rent entirely
- Selling freedom: More flexibility to sell without housing association restrictions
Staircasing Costs
Cost Considerations
Valuation fees: £300-£600 | Legal fees: £500-£1,500 | Stamp duty on additional share if applicable | May need to increase mortgage or use savings
Advantages and Disadvantages
Advantages
Lower Deposit
Only need 5-10% of your share, not the full property value.
Reduced Monthly Costs
Lower mortgage payments compared to full ownership.
Property Ladder Entry
Access homeownership sooner than saving for full deposit.
Capital Growth
Benefit from house price increases on your owned share.
Disadvantages
Ongoing Rent
Always pay rent unless you staircase to 100% ownership.
Limited Properties
Only specific properties available through housing associations.
Selling Restrictions
Housing association has first right to buy when you sell.
Service Charges
Additional monthly costs for building maintenance and insurance.
Finding Shared Ownership Properties
Where to Search
Official Channels
Help to Buy website: Official government portal for shared ownership properties
Local authority websites: Council housing pages often list available properties
Housing association websites: Direct from providers like Clarion, L&Q, Peabody
Application Process
Step-by-Step Application
Online Application
Complete application form with income, employment, and preference details.
Property Search
Browse available properties in your budget and preferred areas.
Expression of Interest
Submit interest in specific properties and arrange viewings.
Offer and Acceptance
If accepted, proceed with mortgage application and legal work.
Shared Ownership Mortgages
Specialist Lenders
| Lender Type | Typical Rates | Maximum LTV |
|---|---|---|
| Major Banks | 5.5-7.5% | 95% of share |
| Building Societies | 5.2-7.2% | 95% of share |
| Specialist Lenders | 5.8-8.0% | 95% of share |
Mortgage Considerations
- Affordability: Lenders assess mortgage payment plus rent and service charges
- Deposit requirements: Minimum 5% of your share value
- Income multiples: Usually 4-4.5x income for shared ownership
- Property restrictions: Not all lenders accept all housing association partners
- Future staircasing: Consider lenders who support staircasing mortgages
Selling Shared Ownership Property
Selling Process
Notify Housing Association
Must inform housing association of intention to sell first.
Marketing Period
Housing association markets to eligible buyers for 4-8 weeks.
Open Market
If no suitable buyer found, can sell on open market with restrictions.
Complete Sale
Receive proceeds proportional to your ownership share.
Capital Gains
Property Appreciation Example
Original purchase: £400k property, 50% share = £200k
Sale value: £500k property
Your share value: 50% of £500k = £250k
Your capital gain: £50k (subject to any sales costs)
Alternative Options
If Shared Ownership Isn't Right
Lifetime ISA
Save with 25% government bonus for first home purchase.
First Homes Scheme
30-50% discount on new build properties in local areas.
95% Mortgages
High LTV mortgages available with 5% deposits for full ownership.
Family Assistance
Guarantor mortgages or family offset schemes for deposit help.
Expert Tips and Advice
Before You Apply
- Calculate total costs: Include rent, service charges, and maintenance
- Research areas: Consider transport links, schools, and future development
- Understand restrictions: Know the rules about subletting, improvements, and pets
- Plan for staircasing: Budget for future share purchases
- Compare with alternatives: Consider if full ownership might be achievable
Common Mistakes to Avoid
Potential Pitfalls
Underestimating ongoing costs | Not budgeting for service charge increases | Choosing too high an initial share | Not understanding selling restrictions | Failing to plan staircasing strategy
Professional Support
When to Seek Help
Mortgage broker for best shared ownership deals | Solicitor experienced in shared ownership | Independent financial advisor for overall affordability | Property surveyor for building assessment