1. Introduction to Shared Ownership
Shared Ownership is a government backed scheme that aims to help first-time buyers get on the property ladder.
It works by letting buyers purchase a share of a home and paying subsidised rent on the remainder.
It’s mainly designed for people who can’t afford to buy outright, as you can buy with a lower upfront deposit and usually lower monthly costs.
Over time, you can buy more shares when it suits you (Staircasing), increasing your ownership at a pace that works for you.
2. Shared Ownership eligibility
Shared Ownership is mainly for those who can’t afford to buy a home on the open market.
Therefore to be eligible, you’ll need to have a household income under £90,000 in London (or £80,000 elsewhere), be a first‑time buyer or no longer able to buy outright, and meet standard affordability and credit checks.
You will also have to fill out an affordability assessment. Each application is assessed individually to ensure the home is affordable and right for your circumstances.
See our page on Shared Ownership eligibility for the full criteria.
3. Example costs of Shared Ownership
The costs of a Shared Ownership home is made up of a smaller mortgage with subsidised rent and a service charge, helping to make monthly costs more manageable.
Below is an example of what you might pay each month for a 1‑bed home at The Verdean, based on purchasing a 25% share.
Example: 1‑bed home at The Verdean
- Full value: £403,000
- Share value (25%): £100,750
- Deposit required: £10,075
- Monthly mortgage: £492
- Monthly rent: £693
- Monthly service charge: £224
- Total estimated monthly cost: £1,409
Minimum household income: £59,424
Maximum household income: £90,000
This example shows how Shared Ownership can reduce both the upfront deposit and monthly repayments, offering a more accessible route onto the property ladder.
4. Common myths about Shared Ownership
There are lots of myths and misconceptions about Shared Ownership, especially for first‑time buyers exploring it for the first time.
In reality, many of the myths around affordability, flexibility and long‑term costs simply aren’t true.
These short videos break down the most common misunderstandings and explain how Shared Ownership really works.
5. Staircasing explained
Staircasing is where you buy more shares in your Shared Ownership home over time, allowing you to gradually increase the amount you own.
You can Staircase in manageable increments starting from 5% when it suits your finances. As your share grows, the rent you pay reduces.
Many homeowners choose to staircase all the way up to 100%, giving them full ownership when they’re ready.
6. Shared Ownership vs renting
Choosing between Shared Ownership and renting often comes down to what you want from your home both now and in the future.
While renting can offer flexibility and lower upfront costs, Shared Ownership provides a more accessible route onto the property ladder, allowing you to buy a share of a home and build equity over time.
Understanding how each option works can help you decide which path best suits your lifestyle.
