Shared Ownership Mortgages
Buy a share of a property and pay rent on the rest. With lower deposits and the option to buy more over time, Shared Ownership makes homeownership achievable.
Content reviewed: 13 January 2026
What is Shared Ownership and how does it work?
Shared Ownership lets you buy a share of a property (25-75%) with a mortgage and small deposit, paying rent on the remainder to a housing association. Buy 50% of a £200,000 home with just £5,000-£10,000 deposit. Over time, you can 'staircase' to buy more shares until you own 100%.
Helping first-time buyers onto the property ladder.
What is Shared Ownership and how does it work?
Shared Ownership is a government-backed scheme letting you buy a share of a property (25-75%) with a mortgage and small deposit, while paying rent on the remaining share to a housing association. For example, buy 50% of a £200,000 home with just a £5,000-£10,000 deposit. Over time, you can 'staircase' to buy additional shares until you own 100%. It's designed for people who can't afford full market prices, offering a genuine path to homeownership with significantly lower upfront costs.
What Is Shared Ownership?
Shared Ownership is a government-backed affordable homeownership scheme that lets you buy a share of a property (typically 25-75%) with a mortgage and deposit, while paying rent to a housing association on the remaining share. It's designed for people who can't afford to buy a home outright on the open market.
The key advantage is lower deposits—you only need 5-10% of the share you're buying, not the full property value. For example, buying a 50% share of a £200,000 property means a £5,000-£10,000 deposit rather than £10,000-£20,000. This makes homeownership accessible with smaller savings.
Over time, you can buy additional shares through 'staircasing' until you own 100% and stop paying rent. Shared Ownership properties are typically new builds or existing homes from housing associations. We'll guide you through eligibility, costs, and finding the right Shared Ownership mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Key Benefits of Shared Ownership
Deposits based on the share you're buying, not the full property value—typically just 5-10%
Buy a percentage of a property (25-75%) and pay rent on the remainder to the housing association
Buy additional shares in your property over time, potentially reaching 100% ownership
Eventually own your home outright by staircasing to 100%, with no restrictions on selling
Shared Ownership Guide: Expert Tips
Everything you need to know about Shared Ownership
You buy a share of a property (typically 25-75%) with a mortgage and deposit, then pay rent to a housing association on the remaining share. For example, buy 50% of a £300,000 property for £150,000 (with a £15,000 deposit), then pay rent on the other £150,000. Your total monthly cost is your mortgage payment plus rent on the unbought share. You're responsible for all maintenance and repairs as if you owned 100%.
Deposits are calculated on the share you're buying, not the full property value. If buying a 50% share of a £200,000 property (£100,000), you'd typically need 5-10% deposit (£5,000-£10,000) rather than £10,000-£20,000 on the full value. This makes homeownership accessible with smaller savings. The lower your share, the smaller the deposit, but you'll pay more rent.
Staircasing means buying additional shares in your property over time, increasing ownership and reducing rent. You can usually buy shares in 10% increments, subject to valuation. Each time you staircase, the housing association gets the property valued, and you pay the market value for the additional percentage. At 100% ownership, you stop paying rent and own the property outright. Some new builds allow staircasing from day one; others have time restrictions.
You pay rent to the housing association on the percentage you don't own, typically 2.75% of the property value annually. On a £200,000 property where you own 50%, you'd pay rent on £100,000—roughly £2,750 per year (£229/month). This rent can increase annually in line with RPI or CPI plus a percentage. Factor this into affordability. As you staircase up, your rent reduces proportionally.
You'll typically pay service charges for maintenance of communal areas, buildings insurance, and ground rent. These can be significant, especially on flats—often £100-£300/month. You're also responsible for all repairs and maintenance inside your property. Budget for these ongoing costs alongside your mortgage and rent. Get full details of all charges before committing, and check if they've increased recently.
You can sell your shared ownership property, but the process differs. The housing association typically has an 8-12 week period to find a buyer before you can market it publicly. You sell only your share (or the full property if you've staircased to 100%). The housing association may charge a selling fee (1-2% of the full property value). If you've staircased to 100%, you sell like any other property with no restrictions.
Shared Ownership FAQs
Common questions about Shared Ownership answered
Your home may be repossessed if you do not keep up repayments on your mortgage.
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