Shared ownership homes offer a low cost way to get on the home ownership ladder. Shared ownership makes housing affordable.
Shared ownership housing: three key things to know:
Shared-ownership makes home ownership more affordable because you can part buy and part rent your home
Homebuy is the Government's range of shared ownership housing schemes
Shared Ownership and Homebuy schemes are managed locally by Housing Association 'Agents'. These 'Homebuy Agents' are the first port of call if you are interested in registering for shared ownership schemes or finding out about shared ownership properties in your area. If you have already been offered a shared ownership home, please contact Share to buy who can help arrange a shared ownership mortgage without charging a broker's fee.
- To find out about shared-ownership in your local area, or to apply for shared-ownership, click on the Local Agents link. Find the local Agent for your area and follow the instructions on their website. Remember: this is the main way to access shared ownership properties.
- For information on shared ownership mortgages, go to our mortgages page or visit Share to buy's shared ownership mortgage calculator to see how much you can borrow. The calculator uses daily updated shared ownership mortgage rates to provide a robust estimate of how much a shared ownership mortgage might cost.
What is shared ownership housing?
Shared-ownership is a great way into home ownership. If you can't afford to buy outright, you can part buy and part rent your home.
You might buy a 25%, 50% or 75% share in your home. You pay a rent on the share that you don't buy normally set at an 'affordable' rate of, say, 3%. The bigger the share that you purchase, the less rent you have to pay. When you can afford to do so, you can buy more shares until you own your home outright in a process known as 'staircasing'. If you already own a shared ownership house or flat and are looking to staircase to a higher share, or even full ownership, contact the Share to buy mortgage team for more information on staircasing and remortgaging.
Housing Associations and shared ownership housing
The other share in a shared ownership property is usually owned by a 'housing association'. Alternatively, some shared ownership homes are provided by house builders directly on schemes called 'shared equity'. Most shared-ownership homes are found in the major conurbations but there are rural schemes available in some areas. You can find out more about shared-ownership properties by clicking here.
If you are interested in buying low cost affordable shared-ownership housing, you will need to contact the local Homebuy Agent or contact a housing association in your area that provides shared ownership homes. You can use the drop down menu below to find the homebuy agent in your area (you can search by local authority or county, but as housing is a devolved policy area, you can currently only search in English regions).
Select your local authority or county
This website, www.shared-ownership.org.uk provides general information on shared ownership housing. For details of actual shared ownership housing, including shared ownership flats and shared ownership houses available in your area, as directed above, you should contact your Homebuy Agent who will also have information about shared-ownership schemes that you might be eligible for. In areas where a lot of shared ownership housing has been built and sold, (e.g. Milton Keynes) estate agents advertise 'second-hand' shared ownership homes known as 'resales'. Note that there is generally more mortgage choice when purchasing a shared ownership property on a second hand resale basis.
To find out more about shared-ownership in general, click on the shared ownership information link.
The Government has recently introduced new types of shared ownership housing called HOMEBUY. To find out more about the Government's Homebuy scheme, click on the HOMEBUY link.
Who can buy shared ownership housing?
Shared ownership housing schemes are usually intended for people who cannot afford to buy a suitable home in any other way. However, the way in which this is defined will vary considerably with some shared ownership schemes merely being restricted to first time buyers and others to applicants living within a certain borough. Priority will often be given to people on local authority or housing association waiting lists.
When a new housing scheme is developed that includes shared-ownership homes for sale; housing associations will usually advertise shared ownership properties for sale. If you are interested in shared ownership housing apply to the local authority or a housing association that offers shared ownership housing in your area as soon as possible.
You don't have to find a new housing development to be able to buy a shared ownership property. When shared owners want to move home, their property will either be offered to the housing association to find a buyer, or will be advertised in the local estate agents (i.e. as a second hand 'resale' property as described above).
Who does the repairs on shared ownership properties?
The shared ownership lease between you and the housing association will set out your rights and responsibilities as a shared owner. Although you have not bought the property outright, you will generally have the normal rights and responsibilities of a full owner-occupier. In particular, you will generally be responsible for the cost of repair and maintenance to your home, paid through a monthly fee known as a 'service charge'. Take care when researching shared ownership properties for sale to ask how much the service charge is, as well as the rent.
How can I get a mortgage on my shared ownership home?
Go to sharetobuy.com to contact the Share to buy mortgage team, who are experts in shared ownership mortgages and don't charge any fees. Or click here for Share to buy's shared ownership mortgage calculator to see what you could borrow on a Shared Ownership Mortgage, and how much it might cost.
Questions and answers
What is shared ownership?
Shared ownership was introduced to help people who cannot afford to buy a home outright. Through shared ownership you buy a share of the property and pay a rent on the remaining share you do not own. Gradually you may buy further shares and eventually own your home outright.
What is a housing association?
They are non-profit making organisations who provide and manage homes for rent and sale for people in housing need who cannot afford to rent privately or buy. Most housing associations provide housing with the help of public money given by the Government or a local authority; in some cases, the association may provide housing using its own money.
Who can buy through the shared ownership scheme?
The scheme is intended for people who cannot afford to buy a suitable home in any other way. Shared ownership schemes will vary in their eligibility but generally, priority will normally be given to existing public sector tenants or those on local authority or housing associations' waiting lists.
Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier.
You are advised to ask your legal adviser as well as the housing association if there are terms you do not understand.
Can I buy a shared ownership home with someone else?
The term ‘shared ownership’ refers to sharing ownership with a housing association, not another individual. But joint applications are generally fine!!
What kind of property can be bought through shared ownership?
Shared ownership homes may be new or renovated flats or houses which are sold through housing associations. Prices vary according to location but are expected to be within the means of those people who cannot afford the prices of properties available for sale in the open market. Just note that mortgage availability can sometimes be more restricted for shared ownership new build flats than on shared ownership houses or second hand shared ownership properties ('resales').
How does shared ownership work?
The scheme allows you to purchase a share of a property usually from a housing association. The share you purchase is funded by a mortgage which you will need to arrange with a bank or building society. The remaining share you do not own is rented from the housing association.
The size of the share to be purchased will depend on your income and savings and you can buy as little as 25% or as much as 75%. You will also have to pay a service charge when you buy a flat. Later on, if you wish and can afford to do so, you can buy further shares until you own the property outright.
Remember that house prices can go up or down. This means that sometimes you might pay more for buying additional shares or have to sell at a price less than you originally paid. When you purchase through shared ownership, the housing association will grant you a lease which sets out your rights and responsibilities.
What does the shared ownership lease entitle me to?
Whether you buy a house or flat under shared ownership terms, the housing association will grant you a lease usually for a period such as 99 years. It will entitle you to live in your home as an owner-occupier. It will also entitle you to buy further shares in the property and sets out how you can do this. It also states that you can sell your property.
Other points covered in the lease set out your responsibility for repair and payment of rent and service charge. Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier.
If you have any questions on how the scheme operates ask the housing association selling the property. You are also advised to take your own legal advice on the terms and conditions of the lease, so please consider obtaining a quote from our shared ownership solicitors
This site includes information about shared ownership housing and homebuy schemes including:
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shared-ownership housing
affordable home ownership
low cost part buy rent
housing association
RSL Registered Social Landlord
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home-ownership
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Shared ownership mortgage calculator
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Share To Buy
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If you have any difficulties in making payments on your shared ownership mortgage, please contact your mortgage provider or housing association immediately.