Who is eligible for shared ownership?

Shared ownership is primarily aimed at first-time buyers and those who used to own a home but cannot afford to buy one now. Your household income must generally be £80,000 or less (£90,000 or less in London). You must not already own another property at the time of purchase. Active military personnel are given priority in some schemes.

Can I sell a shared ownership property?

Yes, but the process differs from a standard sale. The housing association typically has the right to find a buyer first (usually within eight weeks). If they cannot, you can sell on the open market. If you own 100% through staircasing, you can sell freely. You sell your share plus any equity growth on that share.

What is staircasing in shared ownership?

Staircasing is the process of buying additional shares in your property from the housing association. You can usually staircase in increments of 10% or more (or 1% increments on newer leases). Each time, the property is revalued and you pay the current market rate for the additional share. Over time, you can potentially own the property outright.

What is Shared Ownership? Meaning Explained

Shared ownership allows you to purchase a percentage of a property — usually between 25% and 75% — and pay a subsidised rent on the share you do not own. The property is typically provided by a housing association, and the scheme is aimed at people who cannot afford to buy on the open market.

You need a mortgage for the share you are buying, plus a deposit (usually 5% to 10% of the share value, not the full property price). For example, if you buy a 40% share of a £250,000 property, you need a deposit and mortgage based on £100,000 rather than the full amount. You then pay rent on the remaining 60%, typically set at up to 2.75% of the housing association's share.

Over time, you can buy additional shares in the property through a process called "staircasing". Each time you staircase, you increase your ownership percentage and reduce the rent you pay. Eventually, you may be able to staircase to 100% and own the property outright, though this is not available on all shared ownership properties.

The scheme was reformed in 2021 to make it more accessible. Key changes included reducing the minimum initial share to 10% (from 25%), introducing a 10-year initial repair responsibility for the housing association on new-build properties, and making staircasing possible in 1% increments up to 15%.

Example

Aisha cannot afford to buy a property outright in her area where average prices are £280,000. Through shared ownership, she buys a 40% share (£112,000) of a two-bedroom flat. She puts down a 10% deposit on her share (£11,200) and takes a mortgage for £100,800. She pays rent of approximately £385 per month on the remaining 60% owned by the housing association. Her total monthly cost (mortgage plus rent plus service charge) is significantly less than either buying outright or renting privately.

Key Points

You buy a share (typically 25%–75%) and pay rent on the rest
Your deposit is based on the share you buy, not the full property price
You can buy additional shares over time through "staircasing"
The scheme is run through housing associations and usually targets first-time buyers
Since 2021, minimum initial shares can be as low as 10%