What Is Shared Ownership?
Shared Ownership is an alternative way to buy your first home, designed to make getting onto the property ladder more accessible.
Instead of buying a home outright, you purchase a share of the property and pay rent on the remaining part. It can be a helpful option if saving for a full deposit feels out of reach right now.
This guide will walk you through how it works and what to consider, so you can decide if it’s the right choice for you.
How Shared Ownership Works
With Shared Ownership, you buy a percentage of a home, usually between 25% and 75%, and pay a reduced rent on the remaining share.
Because you’re only buying a portion of the property, your deposit is based on that share rather than the full value, which can make it more manageable.
Over time, you may have the option to increase your share in the property, a process known as staircasing. If you eventually purchase 100%, you’ll fully own your home.
Mortgages and Affordability
You’ll usually need a mortgage to buy your share of the property, much like a traditional purchase.
Not all lenders offer Shared Ownership mortgages, so it’s worth speaking to a mortgage advisor to understand your options. Deposits are typically lower than buying outright, but lenders will still assess your income, credit history and overall affordability.
Am I Eligible?
Shared Ownership is designed to support people who may not be able to buy a suitable home on the open market.
Eligibility can vary depending on the property and provider, but generally you’ll need to:
- Have a household income below a certain threshold
- Not currently own another home
- Be able to demonstrate a good credit history
- Show that you can’t afford to buy a home outright that meets your needs
Things to Keep in Mind
While Shared Ownership can make buying more accessible, there are still costs to consider.
You’ll need to budget for things like legal fees, moving costs and, in some cases, Stamp Duty. Alongside your mortgage, you’ll also pay rent on the remaining share and may have service charges depending on the property.
Understanding these costs early can help you plan with confidence.
