Shared Ownership - How does it work?

Shared Ownership Properties Explained

Shared ownership is a government-backed scheme designed to help people buy a home when they cannot afford to purchase one outright. It allows buyers to purchase a share of a property (usually between 25% and 75%) and pay rent on the remaining portion owned by a housing association.

How Shared Ownership Works

You buy a percentage of the property with a mortgage or savings.

You pay subsidised rent on the share you do not own.

Over time, you can increase your ownership share through a process called staircasing, eventually owning 100% in most cases.

Key Features

✔ Lower Deposit & Mortgage – You only need a deposit and mortgage for the share you purchase.
✔ Affordable Rent – The rent on the remaining share is typically lower than market rates.
✔ Staircasing Option – You can buy more shares later, reducing the rent paid.
✔ Leasehold Property – Most shared ownership homes are leasehold, meaning you may have to pay service charges.

Who Is Eligible?

First-time buyers or previous homeowners who can’t afford a home outright.

Combined household income of £80,000 or less (£90,000 in London).

You must not own another property at the time of purchase.

Things to Consider

Lease Terms & Costs – Ground rent and service charges still apply.

Restrictions – Selling the property may involve offering it back to the housing association first.

Staircasing Costs – Increasing ownership shares incurs legal and valuation fees.

Contact us for more information:

Offices in Redditch and Bromsgrove

Tel: 01527 892949

* Figures applicable at time of publishing