Shared ownership lets you buy a share of a home (typically 25–75%) and pay rent on the rest. It can lower the barrier to ownership — but the structure has trade-offs worth understanding.
How it works
You buy a share with a mortgage and deposit on that share, then pay subsidised rent to a housing provider on the remaining share. Over time you can usually buy more shares (“staircasing”), potentially up to 100%.
Who qualifies
- •Household income below the regional cap (£90,000 in London)
- •First-time buyer, or you don’t currently own a home
- •Unable to afford a suitable home on the open market
The trade-offs
You pay mortgage + rent + service charge, and most shared-ownership homes are leasehold. Staircasing costs (valuation, legal) add up, and reselling can take longer. Read the lease carefully.
Key takeaways
- ✓You own a share and rent the rest; you can staircase up over time.
- ✓London income cap is £90,000.
- ✓Budget for mortgage + rent + service charge together.
- ✓It’s almost always leasehold — understand the lease and resale rules.
This guide is general information, not legal, mortgage, tax or investment advice. Rules, rates and scheme availability change — confirm current details with a qualified adviser before acting.