Shared Ownership

Shared ownership allows you to buy a percentage share of a property — typically a new-build — from a housing association (registered provider). Under the current model, you can purchase an initial share of between 10% and 75% of the property's full market value. You then pay:

• A mortgage on the share you own (if you need one)
• Subsidised rent to the housing association on the remaining share — this is typically capped at 2.75% of the unsold share value per year, though the actual rate varies by provider
• A service charge for any communal areas or building maintenance (for flats and some houses)

Because you are only buying a share, the deposit you need is much smaller than for a full purchase. For example, a 5% deposit on a 25% share of a £300,000 property is just £3,750 — making it accessible for first-time buyers or those who have previously owned but cannot afford to buy outright on the open market.

Shared ownership properties are always leasehold. When you buy your share, you are buying a leasehold interest in the property, typically with a lease of 99 or 125 years. This has important implications — you are subject to the terms of the lease, including ground rent (where applicable), service charges, and restrictions on alterations and subletting. As shared ownership properties are leasehold, all the protections and issues that apply to leasehold properties (see our Leasehold Disputes guide) are relevant.

Staircasing is the process of buying additional shares in your shared ownership property over time, gradually increasing your ownership percentage until you own 100% outright. Once you own 100%, you pay no rent to the housing association and own the property as a freehold (for houses) or leasehold owner in the normal way.

Under the new 2021 shared ownership model, you can staircase in increments as small as 1%. Each time you staircase, the share is priced at the current market value of the property — not the price you paid when you first bought. This means that if property prices have risen, you will pay more per additional percentage than when you first bought.

There are typically valuation costs each time you staircase (usually £300–£500 for a RICS valuation), plus legal fees for amending the lease. Some housing associations charge an administration fee. These costs mean that frequent small staircases (such as buying 1% a year) can be expensive relative to the amount of additional equity gained — it may be more cost-effective to save up and staircase in larger increments.

For properties bought under the old model (before 2021), the minimum staircase amount was typically 10% — meaning you needed to save enough to buy at least a 10% tranche each time. If you are on the old model, check your lease to understand the minimum staircase percentage that applies to you.

When you reach 80% ownership on some old-model properties, you can apply to purchase the freehold of a house at the same time as your final staircase — this is worth doing as it removes the leasehold restrictions and is generally cheaper than purchasing the freehold separately.

The government reformed shared ownership in 2021 with a new model that applies to properties advertised after April 2021. The key improvements for buyers under the new model are:

• Lower minimum initial share: The minimum share you can buy has been reduced from 25% to 10%, making the scheme accessible to people with smaller deposits or lower incomes.
• 1% staircasing: As noted above, you can now staircase in increments as small as 1% rather than the previous 10% minimum — giving much more flexibility to increase your share gradually.
• 10-year initial repair period: This is a significant new protection. For the first 10 years of ownership, the housing association is required to contribute up to £500 per year towards the cost of essential repairs to the property. This recognises that new-build properties can have defects and that shared owners (who pay full service charges and a rent element) should have some protection against unexpected repair bills. After the 10-year period, you are responsible for all repairs in the normal way as a leaseholder.
• Lease term: New shared ownership leases under the new model must be for a minimum of 990 years — significantly longer than the 99 or 125-year leases that were common previously, providing long-term security for owners and avoiding the costs and complications of lease extension.

If you are considering a shared ownership property, check whether it is offered under the new 2021 model or the old model — the terms and protections can be significantly different.

Shared ownership is designed for people who cannot afford to buy a suitable home on the open market. Eligibility criteria include:

• Your household income must be no more than £80,000 per year (or £90,000 in London). This is the combined income of all applicants — not per person.
• You must be a first-time buyer, or a previous homeowner who cannot currently afford to buy outright and does not currently own a home
• You must have a deposit sufficient for a mortgage on the share you wish to buy (typically 5–10% of the share value)
• You must be able to afford both the mortgage repayments on your share and the rent on the remaining share — housing associations and lenders will carry out affordability checks

Priority groups who receive preferential consideration include:

• Current shared owners who want to move to a larger or smaller property
• Social housing tenants (council or housing association tenants)
• Armed forces personnel and veterans: Members of the armed forces and recent veterans (discharged within the last 2 years) receive priority for shared ownership properties, regardless of their income or housing situation. This reflects the government's commitment to supporting service personnel who have typically not been able to buy through the usual pathways due to frequent moves.

Applications for shared ownership properties are made through the relevant housing association or through the Help to Buy agents (regional agencies that administer the scheme). Use the "Find a Home" tool on the government's Own Your Home website to search for available shared ownership properties.