Shared ownership is a government-backed scheme that lets you buy a 10–75% share of a property and pay subsidised rent on the remainder to a housing association. Over time, you can buy additional shares (staircasing) until you own the home outright.
What Is Shared Ownership?
Shared ownership is a government-backed scheme that helps people who can't afford to buy a home outright. You buy a share of a property (between 25% and 75%) and pay rent on the remaining share to a housing association.
You only need a mortgage for your share, so the deposit and monthly payments are significantly lower than buying outright. For example, if a property costs £250,000 and you buy a 50% share, your mortgage would be on £125,000.
Who Is Eligible?
- Household income must be £80,000 or less (£90,000 in London)
- You must be a first-time buyer, a previous homeowner who can't afford now, or an existing shared ownership holder
- You must not already own another property
- You need to demonstrate you can't afford to buy a suitable home on the open market
Costs Involved
Your monthly costs will include:
- Mortgage payment: On your purchased share
- Rent: Typically 2.75% of the housing association's share per year, divided into monthly payments
- Service charge: If it's a flat or leasehold house
- Buildings insurance, maintenance, and normal household bills
Stamp duty has been simplified — since April 2021, shared ownership buyers can choose to pay stamp duty on the full market value upfront or defer it until they own 80%+ of the property. See our guide to all mortgage fees for the full picture.
Staircasing: Buying More Shares
Once you've owned your shared ownership property for a specified period (usually 1 year), you can buy additional shares — this is called "staircasing." You can buy shares in increments of as little as 5%.
The cost of additional shares is based on the current market value, so if your property has increased in value, each additional share will cost more. However, your rent will reduce proportionally. You may need to remortgage to fund staircasing.
Pros and Cons
Pros:
- Much smaller deposit needed (as low as 5% of your share)
- Lower monthly payments than buying outright or renting privately
- You can staircase to full ownership over time
- Your deposit is building equity in a property
Cons:
- You're paying rent AND a mortgage
- Selling can be more complex — the housing association usually has first refusal
- Staircasing costs are based on current value, which may have risen
- Leasehold restrictions may apply
Frequently Asked Questions
- What is the minimum share I can buy?
- You can buy as little as 25% of the property (10% in some newer schemes), with rent paid on the remaining share owned by the housing association.
- Can I buy more shares later (staircasing)?
- Yes. You can increase your ownership share over time through 'staircasing' — eventually owning 100% of the property in most cases.
- What are the income limits for shared ownership?
- Your household income must be no more than £80,000 (£90,000 in London) to qualify for shared ownership.
- Can I sell a shared ownership property?
- Yes, but the housing association usually has the right of first refusal to find a buyer for your share. If they can't find one within a set period, you can sell on the open market.
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