02/03/2026
Shared ownership allows you to buy a share of a property (typically 25%–75%) and pay rent on the rest, requiring a smaller deposit (5–10% of your share) and mortgage. It is designed for first-time buyers or those who cannot afford to buy on the open market, often with income caps (£80k-£90k). You must pay rent and potentially service charges, and you can “staircase” (buy more shares)
Key things to know about shared ownership mortgages:
Part-Buy, Part-Rent: You pay a mortgage on your share and reduced rent to a housing association on the remainder.
Deposit: Typically 5%–10% of the share you are purchasing, not the full property value.
Lower Initial Costs: A smaller mortgage is needed, making it easier to get on the property ladder.
Leasehold Properties: Almost all shared ownership homes are leasehold, meaning you pay service charges for maintenance.
Staircasing: You can increase your ownership share over time, which reduces your rent payments.
Limited Lenders: Fewer lenders offer these mortgages, which can restrict your options and potentially increase costs.
Restrictions: You usually cannot sublet the property, and selling requires following specific procedures, including giving the landlord first refusal.
Eligibility: Generally for first-time buyers, previous homeowners who can’t afford to buy again, or those on low incomes
Pros
Lower deposit required.
Smaller mortgage repayments.
Long-term stability compared to renting.
Cons
You pay 100% of the rent and service charges, even if you own only 25%.
You are responsible for 100% of maintenance costs.
If property prices fall, your share value decreases.
Selling can take longer, and you may face high fees.
Before proceeding, it’s crucial to check if you meet the eligibility criteria, such as having a household income under £80,000 (£90,000 in London).
