Frequently Asked Questions

Yes, you can get full ownership of your home by buying additional shares in the property – this is called ‘staircasing’.

With Shared Ownership, you start by purchasing a portion of your home – from 25% to 75%. But if you think that you are ready to buy more of your property, you can do this by buying more shares in your home, one step at a time.

If you choose to staircase, your monthly mortgage repayments will go up, but your rent will go down proportionally. You can of course buy 100% of your home if you come into some big money.

You can only buy houses that have been built on the scheme by a government-backed housing association. But as these houses are usually newly built, private developments, you should be spoilt for choice!

Shared Ownership is a house buying scheme that allows individuals to purchase a portion of a property while renting the remaining share.

It provides an accessible path to homeownership, especially for first-time home buyers. Over time, buyers can increase their ownership share, potentially owning the entire property.

Explore Shared Ownership further or begin your property search.

Shared Ownership offers a unique opportunity for first-time buyers to acquire a stake in either a new build house or flat, or a resale property. Here’s how it works:

• Partial Ownership: Purchasers buy a share of the property and pay a mortgage on that portion.
• Deposit and Mortgage: You put down a deposit of at least 5% of your stake and secure a mortgage to cover the remaining portion.
• Subsidised Rent: The remaining share is rented from a housing association at a reduced rate.
• Lower Deposit: Since the mortgage is only for the purchased share, the deposit required is typically lower than outright purchase.
• Staircasing: Over time, buyers can increase their share, potentially owning the entire property.
• No Rent at 100%: At full ownership, no rent is paid—only mortgage, service charges, and ground rent.

Explore Shared Ownership further or begin your property search.

Shared Ownership provides some of the very best new build properties in the market today.

You have a choice to either buy a new build house or apartment, or you can buy what is called a ‘resales’ unit from an existing homeowner, who is looking to sell their home through the housing association that they originally bought it from.

Explore shared ownership further or begin your property search.

You can buy more shares in your property through what is called staircasing. Start by buying 10% increments with the theory that one day you can have 100% ownership of your home.

Explore Shared Ownership further or begin your property search.

Staircasing is the term used to buy more shares in your shared ownership property.

You can buy an additional percentage of your property at any point. Normally the minimum extra percentage you can buy is 10% at a time.

Most people try to buy them in larger chunks as there are fees that you have to pay each time, so it can become quite expensive if you buy smaller percentages at a time. When you have staircased to 100% you will no longer have to pay any rent to the housing association.

For more detailed information read ‘what is staircasing’.

Housing associations build shared ownership properties to address the pressing need for affordable housing options, particularly for individuals and families who may struggle to purchase a home on the open market due to financial constraints.

By offering shared ownership schemes, housing associations can provide an alternative pathway to homeownership, enabling more people to access secure and stable housing.

These properties are typically new builds:

1. Meeting Demand: New construction allows housing associations to increase the supply of affordable housing in areas where demand is high. Building new properties allows the tailoring design and location to meet the specific needs of potential homeowners.
2. Quality Standards: New build properties often meet higher quality and safety standards compared to older homes. This ensures that buyers have access to modern, energy-efficient homes with lower maintenance requirements.
3. Long-Term Viability: New properties are less likely to require immediate repairs or renovations, reducing the risk of additional costs for both the housing association and the homeowners.

Reselling homes within the shared ownership scheme is an integral part of the process:

1. Meeting Changing Needs: As homeowners’ circumstances change over time, they may decide to sell their shared ownership property. This could be due to factors such as needing more space for a growing family or relocating for work.
2. Increasing Accessibility: Reselling shared ownership homes allows new buyers to enter the scheme, ensuring that the benefits of affordable homeownership continue to be accessible to a wide range of individuals and families.
3. Providing Equity: When homeowners sell their share of the property, they can potentially realize equity from any increase in the property’s value. This equity can then be used to finance a larger share of a new property or to invest in other aspects of their lives.

Shared ownership mortgages offer a unique pathway to owning a home. Here’s a straightforward breakdown:

1. Choose Your Share: Decide on the portion of the property you can afford, typically with guidance from the housing association.
2. Deposit and Mortgage: Put down a deposit, usually 5-10% of your chosen share, and secure a mortgage for the remainder.
3. Rent on the Unowned Share: While you own your portion, you’ll pay rent on the part still owned by the housing association.

Now, onto the types of shared ownership mortgages:

1. Fixed-rate Mortgage: The interest rate remains constant for an agreed period, typically 2 to 5 years, providing stability in your monthly repayments.
2. Variable Rate: Interest rates fluctuate based on the lender’s decision, either tied to the Bank of England base rate (tracker) or the lender’s standard variable rate.

If you’re thinking about selling your Shared Ownership home, the first step is to contact your housing association to let them know. You’ll also need to arrange an independent RICS valuation to determine your property’s current market value.

Your housing provider will usually have an exclusive marketing period, often around eight weeks, where they try to find a buyer for your share. If they do, the sale process will be similar to when you originally bought your home.

If they’re unable to find a buyer within that time, you’re free to sell your Shared Ownership property yourself, either privately or through an estate agent. You can also choose to list your home on property portals to reach more potential buyers.

There’s no minimum share you need to have before you can sell, but the buyer will need to purchase a share equal to or greater than the one you currently own.

The big advantage of getting a Shared Ownership house is that you can pay a smaller deposit than for your average home. You can start with as little as a 5% or 10% deposit of the share you are buying!

Alongside this, don’t forget that you will also need to pay for your mortgage and rent for the share of the home you don’t own. Don’t worry though, as these repayments usually work out cheaper than renting privately in the same area.