SHARED OWNERSHIP EXPLAINED Shared ownership is the most affordable way to take a first step on to the housing ladder. Kay Hill looks at how the scheme works SHARED OWNERSHIP EXPLAINED
Government figures reveal that in 2024- 25, 20,353 Shared Ownership homes were completed – five times the number delivered in 2015-16. Three quarters of sales (76%) were to first time buyers. WHAT IS THE SCHEME? Shared Ownership helps lower income individuals and families take a step on
to the housing ladder by buying a share of the leasehold of a house or apartment from an accommodation provider such as a housing association and paying a controlled rent on the other portion. The amount they are able to buy varies according to their household income, the home and the provider, but starts from as little as 10% of the full market value of the property in the latest schemes. Over time, buyers can
Shared Ownership is a Government- backed scheme that helps first time buyers take a first step on the housing ladder as well as supporting others who cannot afford to move to a suitable home. Established over 40 years ago, an estimated 260,000 households already live in Shared Ownership homes, and the scheme is providing a lifeline for buyers who feel priced out of the open market by rising interest rates and soaring prices.
purchase additional shares in the property, in a process known as “staircasing”, which means they can ultimately own the whole home and no longer pay rent. WHAT IS THE ADVANTAGE? The biggest barrier to homeownership for many households is saving
up the deposit. According to the Halifax House Price Index, the average house price in December 2025 was £297,755 which for a family buying on the open market with a 90% mortgage would mean a £29,776 deposit. Buying 25% of the same house using Shared Ownership, however, would require a minimum 5% deposit of just £3,722, putting it within reach of far more potential buyers. For buyers in London, the difficulty of saving a deposit is even more acute, with the average £539,086 home requiring £53,909 for a 10% deposit, while a 25% Shared Ownership share could be accessed with a deposit of £6,739. Many buyers also struggle to borrow enough money from mortgage providers to buy on the open market – with Shared Ownership you only need a mortgage for up to 95% of the share you are buying, reducing the income that is required. HOW IS IT DIFFERENT TO RENTING? With Shared Ownership, as well as paying a mortgage, you also pay rent on the
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