Shared ownership housing schemes explained

Shared ownership schemes are a cross between buying and renting; aimed mainly at first-time buyers. You own a share and then rent the part you don’t own at a reduced rate. Read on to find out how they work and how to apply.

How shared ownership works

With shared ownership, you buy between a quarter and three-quarters of a property.

You have the option to buy a bigger share in the property at a later date.

These schemes are aimed at people who don’t earn enough to buy a home outright.

Most of the homes available are newly built, but some are properties being re-sold by housing associations.

All shared ownership homes in England are offered on a leasehold only basis.

Each country runs their shared ownership scheme slightly differently - see the links below for more information:

Who can apply for Shared Ownership?

The criteria for who’s eligible for the shared ownership scheme varies from country to country.

See the links above for details of who can apply for the scheme in each country.

In England:

  • First-time buyers or those who used to own a home but can’t afford one now
  • People whose combined household income is less than £80,000 (in London, it’s less than £90,000)
  • You rent a council or housing association property.

You don’t have to be a key worker, such as a nurse or teacher, to apply for shared ownership, but military personnel will be given priority over other applicants.

If you’re aged 55 or over, you can get help from another home ownership scheme called ‘Older People’s Shared Ownership’.

This scheme is similar to a normal shared ownership scheme, but it only lets you buy up to 75% of your home.

Once you own 75%, you won’t have to pay rent on the remaining share.

If you have a long-term disability and cannot find a suitable home for your needs, you can get help with the ‘Home Ownership for People with long-term Disabilities (HOLD)’ scheme.

What’s the application process?

  • Speak to the Housing team in your local council, or housing association, to see whether the scheme is available in your area and whether you’re eligible to apply.
  • You don’t have to live in a council owned home to be eligible.
  • Find out if you can get a mortgage. Not all lenders will give you a mortgage for shared ownership but many of the major ones will do so. You will still have to apply for a mortgage to pay for your share and will have to undergo strict affordability checks by the lender. You will also be expected to be able to provide a deposit.
  • Make sure you will be able to afford all the costs of home ownership; including mortgage fees, moving costs, stamp duty, insurance, repairs, maintenance and, if it’s a flat in a block, your service charge. Remember for Shared Ownership, although you own only a share of the property you still have to pay all of the maintenance costs.

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