Is Shared Ownership A Good Way To Buy A House In The UK?

How to buy a house shared ownership might be the only option for you if you cannot afford all of the deposit and mortgage payments for a property that meets your needs. In this case, you buy a share of the property and pay rent to a landlord on the rest.

When you buy a house through shared ownership in England, you buy a share between 10% and 75% of the home’s full market value. You then pay rent to the landlord for the share they own and you usually pay monthly ground rent and service charges towards the maintenance of communal areas.

The types of home you can buy through shared ownership are usually new-build homes, existing homes through a shared ownership resale scheme or a home that meets your specific needs, e.g. a ground floor flat if you have a long-term disability. Shared ownership homes are offered by housing associations, local councils and other organisations and all properties are leasehold.

Buying your share

If you cannot afford all of the deposit and mortgage payments for a home that meets your needs then the shared ownership scheme might be an option for you. The share you can buy is usually between 25% and 75% and you can take a mortgage to buy your share or pay for it with savings. You will also need to pay a deposit, usually between 5% and 10% of the share you are buying. In the future, there is always the option to buy more shares in your home, otherwise known as ‘staircasing’. When you buy more shares, you will pay less rent because the amount of rent you pay is based on the landlord’s share.

Are you eligible?

How to buy a house shared ownership is only possible if you are eligible. If your household income is £80,000 a year or less (£90,000 a year or less in London) and you cannot afford all of the deposit and mortgage payments for a home that meets your needs.

One of the following must also be true: you are a first-time buyer, you used to own a home but cannot afford to buy one now, you’re forming a new household, you’re an existing shared owner and want to move or you own a home and want to move but cannot afford a new home that meets your needs.

For some homes, you need to show that you live in, work in or have a connection to the area where you want to buy the home.


There are four steps to apply for a shared ownership home:

  • Register and complete a shared ownership application form
  • Contact the landlord of the shared ownership home you want to buy
  • Reserve your home
  • Choose someone to do the legal work (conveyancing)

If you would like to find out more about how to buy a house shared ownership then please get in touch.

*Your home maybe repossessed if you do not keep up repayments on your mortgage.

Scroll to Top