Shared ownership is a government-backed initiative aimed at helping people buy their home. In situations where funds are limited, shared ownership enables you to purchase a share in a property, making home ownership accessible and affordable.

Get a leg up on the property ladder with shared ownership

With shared ownership, your dream home is still within reach. Oftentimes, buying a home is a costly endeavour, which is where shared ownership helps many budding homeowners, like yourself, to get on the property ladder. It allows you to purchase a share (typically between 10% to 75%) of a property and pay rent on the remaining share.

How does shared ownership work?

You buy a share of the property and pay rent to a landlord on the remaining value. Depending on the property and your affordability, you can purchase shares between 10% and 75%.

As you own part of the property (opposed to owning a property outright), you can buy a home with a smaller deposit and lower mortgage repayments. It’s important to note that you still need a mortgage on the home you buy through shared ownership.

After buying your initial share, you can purchase more later down the line. This is known as “staircasing”. Buying more shares means you own more of the property, and therefore, pay less rent on the remaining shares.

There are several charges to consider with shared ownership:

  • Rent on the share of the property you do not own
  • Monthly service charges
  • Ground rent.

New builds are typically available through shared ownership. You can also buy a share of existing properties, including houses and flats. All properties bought through shared ownership are leasehold properties.

Am I eligible for shared ownership?

You can buy a home via shared ownership if:

  • Your household income is £80,000 a year or less (£90,000 in London)
  • And you are unable to afford a deposit and mortgage payments for a property you’ve got your eye on.

Alongside the above criteria, you must also meet one of the following:

  • You’re a first-time buyer
  • You used to own a home but can’t afford to purchase a new one
  • You’re an existing shared owner and want to move
  • You’re forming a new household. E.g. because of a relationship ending.

For some properties, you may also have to prove that you live in, work in, or have a connection to the area where you want to buy a home. For example, you have family members who reside in the area.