Shared Ownership Scheme | The Shared Ownership Scheme helps buyers purchase a share of a home and pay rent on the remaining share. It offers a simple route into home ownership when buying outright is not possible. The scheme lowers deposit requirements, reduces upfront costs and gives you the option to buy more shares over time through staircasing.

This guide explains how the scheme works, the costs involved, eligibility rules and the steps you must follow. It also shows how a mortgage adviser can support your Shared Ownership application.

What Is the Shared Ownership Scheme?

The Shared Ownership Scheme allows you to buy a share of a property and rent the rest. Most buyers purchase an initial share between 10% and 75%. You then pay rent on the remaining share owned by a housing association. You only need a mortgage for the share you buy, so the deposit is much lower than for a full purchase. You also have the option to buy more shares over time. This process is called staircasing.  The scheme primarily applies to new-build homes, but you can also purchase resale Shared Ownership properties.

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How Shared Ownership Works

Shared Ownership combines buying and renting. The structure is simple:

• You buy a fixed share of the home with a mortgage.

• You pay rent to the housing association on the remaining share.

• You pay service charges and ground rent on the lease.

• You can buy more shares later through staircasing.

• You may reach 100% ownership if your lease allows it.

This model helps you step into the housing market at a manageable level.

Who Can Apply for Shared Ownership?

You must meet certain rules to use the Shared Ownership Scheme. The criteria are:

• You must be at least 18 years old.

• Your household income must be below £80,000 outside London.

• Your household income must be below £90,000 in London.

• You must not afford a home on the open market.

• You may be a first-time buyer or a former homeowner.

• You must not have mortgage arrears or unsatisfied debts.

Your provider may also ask for a credit check and proof of stable income.

How Much Does Shared Ownership Cost?

Shared Ownership reduces some costs but introduces others. You must understand each cost:

Deposit

You pay a deposit on your share only. This lowers the amount you need to save.

Mortgage Payments

You make monthly payments for your share. These payments vary by lender and product.

Rent

You pay rent to the housing association on the share you do not own.
Rent increases may apply each year under the lease terms.

Service Charges

You must pay service charges for building upkeep. These may include repairs and communal maintenance.

Staircasing Costs

Staircasing introduces extra charges. These include valuation fees, legal fees and mortgage fees.

Shared Ownership may be cheaper than buying outright, but the total monthly cost can be higher than expected. Understanding these charges helps you plan your long-term budget.

Benefits of the Shared Ownership Scheme

Shared Ownership offers several advantages for UK buyers:

• Lower deposit and reduced upfront cost.

• Access to new-build homes at an affordable entry point.

• Flexibility to buy more shares when your income increases.

• A route to full ownership through staircasing.

• Greater security than private renting.

The scheme is ideal for buyers with a stable income but limited savings.

Risks and Considerations

Shared Ownership also includes some risks and restrictions:

• Service charges and rent may increase.

• Staircasing can be expensive.

• Selling can take longer due to nomination periods.

• Some leases restrict how soon you may staircase.

• You must follow housing association rules.

• You may owe fees when you sell the property.

Review your lease carefully before making a decision.

How to Apply for the Shared Ownership Scheme

Follow these steps to start your Shared Ownership journey:

1. Review Your Budget

Check your income and deposit. Make sure you can afford the mortgage, rent and service charges.

2. Check Eligibility

Review the scheme rules and confirm your income fits the limits.

3. Register With a Local Provider

Sign up with a housing association or search available homes in your area.

4. Speak to a Mortgage Adviser

Shared Ownership mortgages require specialist knowledge.  A broker can guide you through lender criteria and affordability. Use our directory to speak to a specialist mortgage adviser.

5. Obtain a Mortgage in Principle

Your adviser will help you secure a mortgage in principle. You must present this when you reserve a property.

6. Reserve Your Home

Pay the reservation fee and complete the application forms.

7. Complete Legal Work

Your solicitor will review the lease and legal documents.

8. Move Into Your Home

Once the contracts are exchanged, you may move in and begin your payments.

Staircasing Explained

Staircasing allows you to purchase additional shares of your home. Each time you staircase, you increase your ownership share. You must pay a valuation fee, legal fees and mortgage fees.
The price of each new share depends on the property valuation. You may reach 100% ownership if your lease allows it.

You can learn more about home ownership options in our guide to Help to Buy.

Need Expert Guidance?

Shared Ownership rules can be complex.  A specialist adviser can help you review your affordability, find the right lender, and plan for future staircasing.
Use our Mortgage Broker Directory to connect with an adviser today.

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Shared Ownership Scheme – FAQ