shared Ownership 2021 - SO what is Share



Shared Ownership gives first-time buyers and those that do not currently own a home the opportunity to purchase a new home.


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So.. What is
Shared Ownership?

Shared Ownership gives first-time buyers and those that do not currently own a home the opportunity to purchase a share in a new build or resales property, The purchaser pays a mortgage on the share they own, and pays rent to a housing association on the remaining share.


Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is a lot lower when compared to the amount that would be required when purchasing outright.

So.. Why buy a
Shared Ownership home?

Shared Ownership is essentially for people who would like to own their own home but cannot afford to buy on the open market. The cost of ownership is reduced by:

  • The rent is less than the rate charged on the open market and usually charged at 2.75% of the property value per annum,

  • You can start with a little as 25% share in some cases,

  • Your deposit can be 5% of the price of the share, not of the whole property.

  • Stamp duty land tax (SDLT or simply ‘stamp duty’) can generally be deferred until your share reaches 80%.

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Increasing your share

The purchaser has the option to increase his share during their time in the property via a process known as ‘staircasing’, and in most cases can staircase all the way to 100%, thereby owning the property outright. snared ownership properties are always leasehold.

Read on for more information about Shared Ownership and to see whether you are eligible, or start your Property Search now.

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Shared Ownership properties can often be found in private developments as the provision of a certain number of Shared Ownership units will often be required as a part of the planning permission for a development, this can put affordable housing in the heart of some prestigious postcodes.

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So.. What am I buying when I buy with Shared Ownership?

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Effectively you are buying a leasehold house or flat, and this will be either a new build or resale home. However, as you cannot presently afford to buy a home outright, you are paying rent on the portion that you can’t afford.


You have the option to buy further shares – up to and including 100% ownership in most instances – if and when you choose to do so. The price of buying further shares (or ‘staircasing’) will be based on an independent valuation at the time that you purchase the further share. 

So... What are the eligibility rules for Shared Ownership?

There are some general eligibility requirements that anyone wishing to buy a Shared Ownership home must meet. The general eligibility criteria for Shared Ownership is as follows:

  • You must be at least 18 years old.

  • Outside of London your annual household income must be less than £80,000.

  • In London, your annual household income must be less than £90,000.

  • Shared Ownership purchasers are often first time buyers but if you do already own another home, you must be in the process of selling it.

  • You should not be able to afford to buy a home suitable for your housing needs on the open market.

  • You must show you are not in mortgage or rent arrears.

  • You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home.

You should have savings or be able to easily access at least £4,000 to cover the costs of buying a home (this is a guideline figure – the actual amount may vary please discuss this when speaking to a sales representative).

You will also need access to the deposit amount required. For Shared Ownership, this will usually be 5-10% of the equity share you are buying.

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So.. How to buy a Shared Ownership home

Getting started with Shared Ownership is not as complicated as people might think. First of all. you should check if you are eligible. Please note that there may be separate terms regarding priorities and affordability. These will be outlined on each listing.

When you have chosen a property, you will need to make sure you have the required deposit and get a mortgage


To research the mortgages available across the market you can use the Share to Buy Mortgage Affordability Calculator to determine how much you may be able to borrow, and the Share to Buy Mortgage Comparison Tool gives you an insight into the Shared Ownership mortgages available on the market.