What is shared ownership?
Getting onto the housing ladder can be difficult, especially in the South, where prices are high. Shared ownership is a more affordable way of buying a home.
Shared ownership is perfect for first-time buyers or for those who can’t afford to buy a home at the market price.
With shared ownership you buy a share of the house (usually 40% to 75%) and pay rent on the rest of the property, which is set below the market rate. In other words, you will pay a mortgage on the share that you own and pay rent to us for the share that we own. This means that you can secure a home without paying a deposit for the entire property.
If you want to, you can can buy more shares after the initial purchase, until you own the entire property – this is called staircasing. Alternatively, if you decide to move into another property, you can sell your shares to another buyer.
How to get started owning your home
Consider costs and fees and contact relevant service providers such as a solicitor.
Learn more about other fees to consider in our FAQs
Things to consider
Shared ownership is for people who can't afford a home on the open market. If you meet this criteria and can afford to continue paying the costs relating to the property, then you can apply for shared ownership. This is a popular option for first-time buyers.
Priority goes to:
- Social housing tenants
- People who live locally
- Other priority groups
Your credit score
You will need to have a credit check. If your credit score needs improvement, consider waiting before making an application.
You'll also need to plan for the mortgage valuation, surveying, legal fees and stamp duty.