Shared home ownership offers a more accessible route to owning a home for those who cannot afford the full deposit or mortgage on a property that suits their needs. Under this scheme, buyers purchase a share of a property, typically between 10% and 75% of its market value and pay rent on the remaining portion to a housing provider.
The initial purchase can be funded through a mortgage or savings, along with a deposit usually ranging from 5% to 10% of the share. Over time, owners have the option to buy additional shares in the property through a process known as "staircasing," reducing the amount of rent paid to the landlord.
Shared ownership lets buyers get on the housing ladder with a smaller deposit and a part-rent, part-buy model.
Shared ownership properties can be new builds or resales and are often available through housing associations or local councils. For individuals with long-term disabilities, adapted homes may also be available through the scheme.
All shared ownership homes are leasehold, and buyers are typically responsible for service charges and ground rent.
Different rules apply in Northern Ireland, Scotland and Wales where alternative schemes, such as Right to Shared Ownership, may apply if you are currently renting.
Shared ownership can help individuals get on the ladder towards full home ownership making it a valuable option to consider.
