Shared Ownership: an alternative route to home ownership
Shared Ownership is a popular scheme aimed at first time buyers and those returning to the property market. It makes home ownership more affordable and accessible, helping people get on the property ladder sooner.
What is the Shared Ownership scheme?
At its core, Shared Ownership is about expanding access to home ownership. It's a long-established tenure model in the UK housing system. Despite the government introducing it under the Housing Act 1980, and accounting for around 250,000 households, there’s still work to be done to help educate potential buyers about it.
Why is Shared Ownership important to us?
Through Shared Ownership, some of our residents can take the first step towards owning their first property much more affordably. We’re proud to be able to help them onto the housing ladder to achieve this significant life milestone.
That’s particularly important for residents who may not be able to buy outright. By widening access to the property market, Shared Ownership can give them:
- the stability of owning their own home
- the flexibility to increase their share in it over time
How we're growing to serve more customers
Expanding access also means increasing supply
Our recently announced joint venture with Hyde Group will deliver over 1,000 Shared Ownership and social rented homes. This will help more people access good-quality, affordable housing options.
We’ll fund our contribution towards the 50/50 partnership through our annuity portfolio. Productive finance investments and partnerships with not-for-profit organisations are pivotal to unlocking the investment needed to address Britain’s housing need.
And we deliver this growth responsibly. Our Affordable Homes business recently achieved the best possible ratings across governance, fianncial viability and consumer standards from the Regulator of Social Housing.
Is Shared Ownership worth it?
We’ve supported Shared Ownership customers from a wide range of backgrounds. They have benefited from the scheme in ways they never expected. Hear directly from them below:
So, how does Shared Ownership actually work?
Shared Ownership enables an eligible person to buy a share of a property - typically between 25% and 75% - while paying rent on the remaining share. The scheme helps reduce the upfront costs of full ownership, including deposit size and mortgage borrowing levels.
By lowering costs like the deposit and mortgage, Shared Ownership makes home ownership possible for more families. People who may otherwise remain in private renting or be unable to buy in their chosen area, now have more opportunity to own.
Buying a Shared Ownership home usually involves:
1.) Finding a suitable property:
Shared Ownership homes are available across the UK. They include a range of property types and locations. Finding a property that suits the buyer’s needs is the first step.
2.) Assessing eligibility:
Check the eligibility criteria. Eligibility can depend on:
- income
- current housing situation
- affordability
- whether the applicant is a first‑time buyer or returning to the market
3.) Buying an initial share:
Buyers take on a percentage of the home through a mortgage or cash purchase. The housing provider still owns the remaining share. They charge rent on that portion.
4.) Moving in:
Once the legal processes are complete, the buyer moves into the home.
Most Shared Ownership homes are newly built and and ready to move into.
HOME Hub
Are you thinking about Shared Ownership of your own home? If so, it’s important to understand how the process works. Our HOME hub brings together practical guidance on finding, buying, living in, increasing your share of and moving on from your ideal Shared Ownership home.
Find answers to common questions including:
- How do you apply for Shared Ownership?
- Am I eligible for Shared Ownership?
- Can I increase the share of my home over time?
- How do I sell a Shared Ownership home?