All you need to know about Shared Ownership

Shared Ownership is a key part of the Government’s affordable housing strategy. It allows buyers to purchase a share in a property while paying rent to the organisation who owns the remaining share (usually a Housing Association).

Apparently, over 200,000 homes are currently in the scheme with new properties added all the time.

The benefits include:

  • Lower mortgage deposit required (it’s based on the share you’re purchasing only)
  • You can purchase more of the property when you are able to afford it (in a process called ‘Staircasing’)
  • You may be able to limit stamp duty payments
  • There are new build and existing properties available, giving plenty of choice

Don’t forget though, this is different to renting – Iike a homeowner, you’re usually responsible for the property’s upkeep.

To be eligible for the scheme, homebuyers have to meet key requirements:

  • Either be a first-time buyer unable to afford a home suitable for their needs on the open market, or a previous homeowner who can no longer afford one.
  • Have an annual household income less than £80,000 (£90,000 in London).
  • Purchase between 10% and 75% of the property initially.

The rent on the unowned share is usually set at 2.75% and rises each year at a minimal agreed rate. The aim is for your combined rent and mortgage payments to be lower than renting privately, plus you are officially on the property ladder!

Under the staircasing process, you can purchase additional shares in the property, often in 10% chunks, up to 100% ownership – when you would no longer have to pay any rent.

When you decide to sell the property (assuming you haven’t staircased to 100%), first approach the housing association who has a period of time (known as the nomination period) to find a new buyer.

After this time passes, you can sell your share on the open market (but it still remains a Shared Ownership property). You can move on to purchase your next property – either within the scheme or elsewhere.

A full list of eligibility criteria for Shared Ownership can be found on the government website here.


We can help fund your purchase with a specialist Shared Ownership mortgage. Don’t forget to ask an expert!

Call today on 01582 45 00 00 or visit for more information and to request an appointment.

Talk to an adviser today
 to check whether you’re on the right mortgage deal for you.





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