What is shared ownership?
Shared ownership is a government scheme that allows you to buy a share of a property (between 10% and 75% of the property value) and then pay rent on the remaining share, usually to a housing association or local authority. This means you’ll only need to take out a mortgage for the share you want to buy, so your deposit can be as little as 5% of the price of your share, not of the whole property.
Later on, you can then look to purchase bigger shares at any time. This is known as ‘staircasing’ and enables you to gradually own more of your home as and when you can afford to. Your rent would then reduce in line with any further shares you purchase.
Example of shared ownership
Example house value
(100%)
£200,000
The share you want to buy
(50%)
£100,000
Minimum deposit
(5% of £100,000)
£5,000
The share you want to rent
(50%)
£100,000
The scheme is available on new and existing properties and is eligible to households with a combined income of £80,000 a year or less (or £90,000 a year or less in London).
You must also:
- be a first-time buyer; or
- have previously owned a home; or
- be an existing shared owner looking to move.
If you would like to buy your home using the shared ownership scheme, you will need to contact the Help to Buy agent in your area. Details about your local agent and information about the scheme can be found by visiting the government’s Own Your Home website.
