How does staircasing work in shared ownership?

Short answer

You buy additional shares in your home over time — in increments as small as 1% under the post-2021 model — until you own 100%. Each purchase is priced on a current market valuation, and the rent you pay the housing association on the unsold share falls as your ownership rises.

Shared ownership starts with you buying a share of between 10% and 75% of a property and paying subsidised rent to a housing association on the rest. Staircasing is the process of buying more of it later.

How the mechanics work

Each staircasing purchase is priced on a fresh valuation at the time you buy, so if prices have risen, the extra share costs more than it would have done at the outset — and if they have fallen, it costs less.
Under the 2021 model you can staircase in steps as small as 1%, rather than the large minimum increments of older leases. Check which model your lease follows, because it changes what is possible.
Rent on the unsold share reduces proportionately as your share grows, and disappears entirely at 100%.
Each purchase carries its own costs — valuation fee, legal fees and any mortgage arrangement fee — so very frequent small steps can be poor value in practice.

The wider deal

You need a shared ownership mortgage, secured on your share rather than the full value, with a deposit typically of 5–10% of the share — which is what makes the scheme affordable. Not every lender offers them, so use a broker familiar with the product. Eligibility is capped at a household income of £80,000, or £90,000 in London, and armed forces personnel receive priority consideration.

The 2021 model also brought a 10-year initial repair period during which the housing association contributes to the cost of major repairs — a meaningful protection, since shared owners are otherwise responsible for repairs to the whole property despite owning only part of it.

Selling, and the risks

Below 100% ownership you cannot simply put the property on the open market. The housing association has a right of first refusal — an 8-week window under the new model — to buy it back or find another eligible shared owner. After that you can market it more widely, but the buyer must still qualify for the scheme and take on the same lease. At 100% you sell like any other owner.

Subletting the whole property is generally prohibited and can lead to forfeiture, and if prices fall you may find yourself unable to staircase, remortgage or sell while in negative equity. Talk to the housing association early if you are struggling.

Read the full guide: Shared OwnershipCovers eligibility, the process, deadlines, and next steps in depth.

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