Shared ownership lets you buy a share of a property — typically between 10% and 75% — and pay a subsidised rent to the housing association on the remaining portion. Your mortgage covers your share only, making it significantly smaller and more accessible than a standard residential mortgage on the full property value. For more information, see the official Shared Ownership scheme.

Who is eligible for shared ownership?

To qualify, your total household income must be £80,000 per year or less, or £90,000 or less in London. You must also be unable to afford a suitable property on the open market without the scheme. Eligible applicants include first-time buyers, previous homeowners who can no longer afford to buy, people forming a new household after a relationship breakdown, existing shared owners who want to move, and homeowners who cannot afford a suitable new home that meets their needs. Some developments also require a local connection — that you live or work in the area — though this is not universal.

What will it cost each month?

Your monthly outgoings have three components. On a flat valued at £300,000 where you buy a 30% share, you would typically pay a mortgage on your £90,000 share of around £350 to £430 per month, subsidised rent to the housing association on the remaining 70% of around £525 to £700 per month, and a service charge for building maintenance of around £150 to £400 per month. The rent element typically increases each year in line with RPI or a fixed percentage written into the lease, so factor this into your long-term affordability planning.

Staircasing: buying more of your home over time

Staircasing is the process of buying additional shares in your property, gradually increasing your ownership until you own it outright. Under the current model for properties purchased from April 2021, you can staircase in increments as small as 1% per year for the first 15 years — a significant improvement over the older model which required minimum 10 to 25% jumps per transaction. Each staircase transaction requires a new RICS valuation at current market value and legal fees, typically £1,500 to £2,500. Most properties can be staircased to 100% full ownership, after which no further rent is payable. Some properties in designated protected areas are capped at 80% maximum ownership. For buyers aged 55 or over, the Older Persons Shared Ownership scheme caps ownership at 75%, but once that threshold is reached the remaining 25% rent is waived entirely.

If property values in your area rise significantly, each staircase transaction becomes more expensive because you buy at the current market value. Buying the largest initial share you can comfortably afford is usually more cost-efficient than planning on frequent small staircases.

Getting the mortgage

Not all mainstream lenders offer shared ownership mortgages, and criteria vary across those that do. We have whole-of-market access and will identify the most suitable lenders for your share size, deposit amount, and credit profile — including lenders who accept a gifted deposit toward your share purchase.