How Shared Ownership Works in the UK
What Is Shared Ownership and How Does It Work in the UK?
Shared ownership makes buying a home in the UK more accessible for people who cannot yet afford to purchase outright. This guide explains exactly how the scheme works, who is eligible and what you need to know before you commit.
Shared ownership is a government-backed affordable homeownership scheme available across the UK. It allows eligible buyers to purchase a percentage share of a property, typically between 10 and 75 percent of the full market value, and pay a subsidised rent to a housing association on the share they do not yet own. Over time, buyers can purchase additional shares through a process called staircasing until they own the property outright if they choose to.
Shared ownership properties are offered by registered housing associations and are available on both new build and resale properties in many parts of the UK. The scheme is designed primarily for first-time buyers and people who previously owned a home but can no longer afford to buy outright in the area where they need to live.
The complete process
Check your eligibility
To qualify for shared ownership in England you must be a first-time buyer, or a previous homeowner who no longer owns a property and cannot afford to buy outright. Your household income must be below 80,000 pounds per year, or below 90,000 pounds in London. You must be able to demonstrate that you cannot afford to purchase a suitable home on the open market in the area where you need to live.
Find a shared ownership property
Search for shared ownership properties through registered housing associations in your target area. Many new build developments include a shared ownership allocation alongside open-market properties. Renowned Homes lists shared ownership flats and apartments available across the UK.
Apply to the housing association
Once you have identified a shared ownership property, you apply directly to the housing association. You will need to provide proof of income, savings and eligibility. The housing association will assess your application and confirm the share percentage you are eligible to purchase based on your financial position.
Arrange a mortgage on your share
You will need a mortgage to fund your share purchase unless you have sufficient savings to buy outright. Most major UK lenders offer shared ownership mortgages. Speak with a whole-of-market mortgage broker familiar with shared ownership lending to identify the best available product for your circumstances.
Exchange and complete
The conveyancing process for a shared ownership purchase follows a similar structure to a standard property purchase but involves additional legal documentation covering the lease terms, rent obligations and staircasing rights. Instruct a solicitor experienced in shared ownership conveyancing.
What Does Shared Ownership Actually Cost?
Deposit
Your deposit is calculated as a percentage of your share value, not the full property value. A 10 percent deposit on a 25 percent share of a 300,000 pound property is 7,500 pounds, making shared ownership significantly more accessible for buyers with smaller deposits.
Monthly payments
Your monthly outgoings include your mortgage repayment on the share you own and the subsidised rent payable to the housing association on the remaining share. Service charges also apply on leasehold shared ownership flats.
Stamp duty
First-time shared ownership buyers can elect to pay stamp duty only on the share they are purchasing rather than the full property value, which significantly reduces the upfront tax liability.
Staircasing costs
Each time you purchase an additional share you will need an updated property valuation, legal fees and potentially a new or remortgaged lending arrangement. Budget approximately 1,500 to 3,000 pounds in professional costs for each staircasing transaction.
How to Buy More of Your Home Over Time
Staircasing is the process by which shared ownership buyers increase their percentage share of the property over time. Each time you stair, you purchase an additional share at the current market value of the property, reducing the rent you pay on the remaining portion accordingly.
Under the current shared ownership model introduced in 2021, buyers can stair-step in increments of as little as 1 percent per year for the first 15 years of ownership. Once you own 100 percent of the property, you own it outright with no further rent obligation and in most cases you will also acquire the freehold or an extended lease.
Shared Ownership Properties on Renowned Homes
Renowned Homes lists shared ownership flats and luxury apartments available across the UK. Browse available shared ownership properties alongside our complete guide library covering buying, selling, mortgages and leasehold ownership. All guides are free to read with no registration required.
Frequently Asked Questions
What is the minimum share I can buy under shared ownership?
The minimum initial share purchase under the current shared ownership model is 10 percent of the full market value of the property.
Can I sell a shared ownership property?
Yes. You can sell your shared ownership property at any time. If you own less than 100 percent, the housing association typically has the right to find a buyer for the property first, a period known as the nomination period, usually lasting between four and eight weeks. After this period passes, you can market the property on the open market.
Is shared ownership the same as Help to Buy?
No. The Help to Buy Equity Loan scheme, which was available on new build properties in England, closed to new applications in March 2023. Shared ownership is a separate and currently active scheme available on both new build and resale properties through registered housing associations.
What are the risks of shared ownership?
The main risks include the obligation to pay both a mortgage and rent simultaneously, potential service charge increases on leasehold properties, the cost and complexity of staircasing and the restriction on making structural alterations without housing association consent. Understanding these obligations fully before exchanging contracts is essential.
Explore Shared Ownership with Renowned Homes
Browse shared ownership flats and apartments listed on Renowned Homes, and read our complete property guide library before you commit.
