In this guide, we’ll walk you through a clear real example of Shared Ownership costs.
From the initial deposit and upfront fees to monthly outgoings and even a staircasing example, you’ll see exactly how Shared Ownership prices work in practice. Whether you’re comparing options or just starting your research, this breakdown will help you understand the true cost of buying a Shared Ownership home.
How Shared Ownership works
Shared Ownership enables you to purchase a smaller share of your home, while paying subsidised rent on the share owned by your housing provider.
Buyers usually purchase a share of a property and pay rent on the remaining share. Over time, buyers can increase their share through a process called Staircasing until they eventually own more, or potentially all, of the home. This makes it an accessible route onto the property ladder, especially in areas where buying outright can feel out of reach.
Key benefits include:
- Lower deposit requirements compared to buying outright.
- Often lower monthly costs when compared to renting in the same area.
- The option to Staircase and build equity gradually.
Am I eligible for Shared Ownership?
Before you get carried away by the perks of Shared Ownership, you might want to start by finding out if you are eligible.
Shared Ownership was mainly designed to ease first-time buyers onto the housing ladder, but you can still use the scheme if you’ve bought a home before (provided you are in the process of selling).
- You must be aged 18 or older.
- Your annual household income must usually be less than £90,000 if you are buying in London, or less than £80,000 outside London.
- You will normally be a first-time buyer, or be in the process of selling your current home. You must not own any other property at the time you buy your new home.
- You should not be able to afford to buy a suitable home on the open market.
- You must be able to show you are not in rent or mortgage arrears and demonstrate a good credit history.
- You must be a British or EU/EEA citizen, or have indefinite leave to remain.
- You must be able to pass money laundering and fraud checks.
- Always check the latest eligibility rules before applying, as criteria can vary depending on the home, location and scheme requirements.
Shared Ownership deposit
One of the major draws of Shared Ownership is that deposits are much lower than buying on the open market. Instead of paying a deposit based on the full market value of the property, the deposit is calculated only on the share you buy.
For example, if you were to buy a 25% share of a £400,000 property (£100,000), a 10% deposit would be just £10,000 - compared to £40,000 if you bought the whole property outright. In places like London, this lower cost to entry can be a huge help.
Shared Ownership purchase costs:
When buying a home through Shared Ownership, there are additional upfront costs beyond the deposit to consider. These indicative costs may vary depending on the property, lender, solicitor, or mortgage advisor you use:
- £500 Reservation fee: Secures the property and is deducted from the final purchase price if you proceed.
- £700 Solicitor’s fee: Covers legal work such as reviewing contracts and transferring ownership.
- £600 Legal disbursements: Includes Land Registry fees and local authority searches.
- £400 Mortgage advisor fee: Pays for tailored mortgage advice.
- £0–£800 Mortgage valuation fee: Charged by the lender to confirm the property’s value.
- £0–£999 Mortgage arrangement fee: The lender’s setup fee, payable upfront or added to your loan.
You’ll need to speak to a mortgage lender that offers Shared Ownership mortgages. Your lender or mortgage adviser will look at how affordable the mortgage is alongside your rent, service charge and other regular outgoings.
These fees can add up, so it’s important to budget for them early on in the process to avoid any surprises.
Shared Ownership monthly costs
Monthly outgoings under Shared Ownership are made up of three main elements:
- Mortgage repayments on your share.
- Rent paid on the unsold share. Rent is usually calculated as a percentage of the unsold share’s value, with Peabody up to a maximum of 2.75% per year.
- Service charges for the upkeep of communal areas, building insurance, and maintenance.
Combined, these can often be lower than renting privately in the same area, with the additional advantage that they also allow you to build equity in your share of the property.
Shared Ownership real example costs
Let’s look at two real developments to give you a clearer picture. Note that financial information provided is estimated and should be used for guidance only. Speak to an Independent Mortgage Advisor for more details about the costs involved with buying a home.
Deptford Edge – monthly costs
Deptford Edge offers a collection of 1 and 2-bedroom Shared Ownership homes on the edge of one of London’s most vibrant creative neighbourhoods, just moments from the River Thames.
Each home is designed with light, comfort and practicality in mind, combining stylish modern design with an innovative approach to sustainability. At Deptford Edge, you have the buzz of the city and the calm of the riverbank.
Here is an example of the costs for a 1-bed apartment at Deptford Edge:
- Full Value: £395,000
- Share Value (25%): £98,750
- Deposit Required: £9,875
- Monthly Mortgage: £482
- Monthly Rent: £679
- Monthly Service Charge: £230
- Total Monthly Cost: £1,391
- Minimum Household Income: £56,365
- Max Household Income: £90,000
KEWB - monthly costs
KEWB is a new collection of 1, 2 and 3-bedroom Shared Ownership apartments in Brentford, perfectly placed between the Royal Botanic Gardens at Kew and Gunnersbury Park. Just a short walk from Kew Bridge Station and moments from the River Thames, KEWB combines suburban tranquillity with excellent connections into central London.
With private balconies, contemporary interiors, and green spaces on your doorstep, these homes offer a rare chance to own in one of West London’s most desirable riverside neighbourhoods.
Here is an example of the costs of a 1-bed apartment at KEWB:
- Full Value: £432,500
- Share Value (25%): £108,125
- Deposit Required: £10,813
- Monthly Mortgage: £589
- Monthly Rent: £743
- Monthly Service Charge: £238
- Total Monthly Cost: £1,571
- Guidance Household Income: £63,566
- Max Household Income: £90,000
These examples highlight how Shared Ownership can bring high-value homes into reach with manageable deposits and monthly costs.
Browse our Shared Ownership homes
An example of Staircasing costs
Staircasing is the process of buying additional shares in your Shared Ownership property, which reduces the rent you pay and increases the equity you own. Let’s look at a practical example.
The more shares you buy, the less rent you pay on the remaining share, which can make Staircasing an appealing long-term option for buyers who want to build ownership gradually.
The cost of a share will depend on the property value and the percentage you buy. You may also need to factor in valuation and legal costs when staircasing, so it’s worth planning ahead before deciding to buy more shares.
Imagine you purchased a 25% share of a £395,000 apartment at Deptford Edge. Your initial share cost £98,750 with a deposit of £9,875. Your monthly outgoings are around £1,391, made up of mortgage payments (£482), rent (£679), and a service charge (£230).
Now, let’s say you decide to staircase by an additional 10% share:
- Current full market value: £395,000
- 10% share value: £39,500
- New ownership share: 35% (25% + 10%)
- Revised share owned: £138,250 in equity
By purchasing this extra share, you won’t need to provide a deposit. Instead, you’ll arrange for a mortgage (or use savings) to cover the cost of the new share. Your monthly mortgage will rise to reflect the larger loan, but your rent will fall because you’re paying it on a smaller share of the property.
The overall increase in your monthly cost is often less than people expect. More importantly, you’ll own a greater portion of your home and build equity faster.
It's important to note when Staircasing, you will need to arrange a new valuation of your property, as the cost of the additional shares is based on the current market value of the property. This ensures the price you pay reflects the most up-to-date property value.
This example shows how Staircasing can be a flexible way to work towards full ownership over time, without needing to commit to 100% from the start.
Frequently asked questions about Shared Ownership costs
The deposit is based on the share you buy, not the full property value. For a £100,000 share, a 10% deposit would be £10,000.
Rent varies depending on the value of the unsold share, but typically it’s around 2.75% of that share per year, divided into monthly payments.
Beyond the deposit, you’ll need to budget for solicitor’s fees, mortgage fees, reservation fees, and service charges.
It can be, depending on where you want to live. Your monthly costs with Shared Ownership will include a mortgage, rent on the unsold share and service charge, so it’s important to compare the total monthly cost against renting privately.
New research has shown that Shared Ownership is a more affordable option than private renting across the UK in most cases. Studies show that in 93% of local authorities, Shared Ownership is projected to be less expensive than renting after 10 years.
No. Your mortgage, rent and service charge can change over time. Rent is usually reviewed annually, service charges can vary depending on building management costs, and mortgage payments may change depending on your mortgage rate.
