Shared Ownership UK Guide

Shared ownership is a government-backed scheme that helps people who cannot afford to buy a home outright. You buy a share of a property — typically between 25% and 75% — and pay rent on the remaining share to a housing association. Over time, you can buy additional shares (a process called "staircasing") until you own the property outright.

Who Is Eligible?

To qualify for shared ownership in England, you must meet certain criteria:

• Your household income must be no more than £80,000 per year (or £90,000 in London)
• You are a first-time buyer, or you used to own a home but cannot afford to buy one now, or you are an existing shared owner looking to move
• You cannot afford to buy a suitable home on the open market in your area
• You are not in mortgage arrears or have a poor credit history that would prevent you getting a mortgage

Military personnel are given priority for shared ownership properties, and some schemes have additional local connection criteria.

How It Works

The process works as follows: a housing association builds or acquires a property and offers it through shared ownership. You choose what share to buy (subject to affordability and the minimum offered). You take out a mortgage on your share and pay rent on the housing association's share. You also pay a service charge if the property is a flat or has communal areas.

The Costs

Staircasing

Staircasing is the process of buying additional shares in your property over time. You can usually buy shares in increments until you own 100% and no longer pay rent to the housing association. Each time you staircase, you need to get the property independently valued (at your cost) to determine the price of the additional share based on the current market value — not the original purchase price. This means if property values have risen, you will pay more for each additional share than if you had bought it initially.

Under the new model shared ownership (for properties built from April 2021 onwards), you can staircase in increments as small as 1% for the first 15 years, making it more gradual and affordable.

Advantages

• Lower deposit: You only need a deposit on your share — typically 5% of your share, not 5% of the full property value. In the example above, that is £5,000 rather than £12,500.
• Get on the ladder: You start building equity in a property rather than paying rent with no return.
• Smaller mortgage: Because you are only borrowing for your share, the mortgage is more affordable and easier to qualify for.
• Path to full ownership: You can increase your share over time as your income grows.

Disadvantages

• Rent increases: Rent on the housing association's share typically increases annually, usually by RPI + up to 0.5% (or CPI + 1% for newer properties). This can add up over time.
• Selling restrictions: When you want to sell, the housing association usually has a nomination period (typically 4–8 weeks) to find a buyer before you can sell on the open market. This can slow the process.
• Service charges: These can be high, especially for flats, and you have limited control over them.
• Leasehold: Most shared ownership properties are leasehold, which means ground rent (though often zero) and potential issues with short leases over time.
• Remortgaging can be harder: Fewer lenders offer shared ownership mortgages, which can limit your options when your deal ends.

New Model Shared Ownership (from 2021)

For properties funded through the Affordable Homes Programme from April 2021, a new model of shared ownership applies. The key changes are:

• Minimum 10% share: You can buy from as little as 10% of the property (previously 25%).
• 1% staircasing: You can buy additional shares in increments as small as 1% for the first 15 years.
• 10-year repair period: The housing association is responsible for the cost of essential repairs for the first 10 years, up to a cap of £1,500 per claim.

Right to Shared Ownership

The Right to Shared Ownership allows some social housing tenants to buy a share of their rented home using the shared ownership model. This applies to new homes built or acquired by housing associations as part of certain government programmes. It is separate from the Right to Buy, which is available to council tenants and allows them to purchase their home at a discount.

For more on getting on the property ladder, see our first-time buyer mortgage guide. Use our mortgage calculator to estimate your monthly payments, and check our stamp duty calculator to understand the tax implications.