What is Shared Ownership in the UK?
Shared ownership is a government-backed scheme that helps first-time buyers and those with lower incomes get a foot on the property ladder. It allows you to buy a share of a home (usually between 10% and 75%) and pay subsidised rent on the remaining portion, which is owned by a housing association.
It’s a great option if you can’t afford to buy a home outright but still want to start building equity and enjoying the benefits of homeownership.
Who is Eligible for Shared Ownership?
To buy a shared ownership property in the UK, you typically need to meet the following criteria:
- You’re at least 18 years old
- Your household earns £80,000 or less per year (£90,000 or less in London)
- You’re a first-time buyer or don’t currently own a home
- You cannot afford to buy a home that meets your needs on the open market
Note: Some shared ownership homes are reserved for specific groups like key workers or military personnel, so always check local requirements.
How Does Shared Ownership Work?
When you buy through shared ownership:
- You purchase a share in a property (starting from as low as 10% in some cases)
- You pay a mortgage on your share
- You pay rent (typically at 2.75% of the unsold share’s value per year) to the housing association
- You also pay service charges and any ground rent, if applicable
Over time, you can buy more shares in your home through a process called staircasing, and potentially own it outright.
Step-by-Step: How to Buy a Shared Ownership Property
1. Check Your Eligibility
Use online tools from housing associations or government portals like Share to Buy to check if you qualify for shared ownership.
2. Find a Shared Ownership Property
Search for shared ownership homes through:
- Housing association websites
- Shared ownership property portals (e.g. Share to Buy, HomeViews)
- Your local Help to Buy agent
3. Apply and Get Financial Advice
Once you’ve found a property you like, submit an application and speak with a specialist mortgage adviser. They’ll assess your affordability and help you find a lender.
4. Reserve Your Property
If accepted, you’ll usually pay a reservation fee (around £250–£500) to secure the home while legal and financial steps are completed.
5. Appoint a Solicitor
You’ll need a solicitor familiar with shared ownership. They’ll handle contracts, searches, and liaise with the housing association’s legal team.
6. Secure Your Mortgage
Apply for a shared ownership mortgage based on your approved share. These are available through several UK lenders.
7. Exchange Contracts and Complete
After legal checks are complete and your mortgage offer is approved, you’ll exchange contracts, pay your deposit, and set a completion date.
Congratulations — you’re officially a homeowner (partly, for now)!
Costs to Consider When Buying a Shared Ownership Home
- Deposit (usually 5–10% of the share you’re buying)
- Mortgage fees
- Legal and solicitor fees
- Valuation/survey costs
- Stamp duty (only payable on the share you buy, unless you opt to pay on 100% upfront)
- Service charges and rent
Pros and Cons of Shared Ownership
✅ Pros:
- Lower deposit and mortgage required
- Step onto the property ladder sooner
- Option to staircase to full ownership
- Secure, long-term housing
❌ Cons:
- You still pay rent
- Additional fees for staircasing
- Resale must be approved by the housing association
- Some restrictions on making alterations or subletting
Is Shared Ownership Right for You?
Shared ownership is ideal if:
- You’re a first-time buyer with a modest income
- You want long-term stability
- You can’t afford to buy a home outright
But if you have a higher income or want full freedom over your property immediately, other options like Help to Buy, First Homes, or traditional purchasing might suit you better.
Final Thoughts: Shared Ownership Can Open the Door
Buying a shared ownership property in the UK is a realistic and flexible way to step onto the housing ladder. With lower upfront costs and the potential to buy more of your home over time, it’s a great option for many first-time buyers.
As always, do your research, speak to trusted professionals, and make sure it aligns with your long-term financial goals.
Emily's Mortgage Services LTD 