- Deposit required: Minimum of 5% of share value
- Ownership: Between 10%-75% of the home's value (local conditions may apply)
- Headline benefits: Enables people to get on the housing ladder with a smaller mortgage and deposit.
- Headline requirements: Household income must be under £80,000 (£90,000 in London).
Availability: England only
Overview of scheme
If you can’t quite afford the mortgage on 100% of a home, Shared Ownership offers you the chance to buy a share of your home (between 10% and 75% of the home’s value) and pay rent on the remaining share. Later on, you could buy bigger shares when you can afford to.
We will be funding a new model for Shared Ownership through the Affordable Homes Programme 2021-26. Up to 50% of homes delivered through this programme will be for the new model of Shared Ownership.
- We have reduced the initial stake from 25% to 10%
- We have introduced a 10 year repair during which the shared owner will receive support from their landlord to pay for essential repairs - bridging the gap between renting and home ownership.
- We have introduced a new 1% gradual staircasing model enabling shared owners to staircase in smaller instalments of as little as 1%, down from 10%, with heavily reduced fees.
- We have given shared owners more control when they come to sell their home. Shared owners will be able to take control of the resales process from the landlord at an earlier point, giving them greater influence over the sale.
- The new model should be available to purchase from 2022 (a limited number of homes will be available before that). We will continue to fund the present Shared Ownership scheme until 2023 through the Affordable Homes Programme 2016-23. There will, therefore, be a transition period in which both the former and new Shared Ownership models will be available.
- As a result, it will be important to check which model you are applying for. Help to Buy agents (see “How to apply” below) will be able to advise you on what terms and conditions apply to the schemes available in your area and which models of Shared Ownership are being delivered.
You could buy a home through Shared Ownership in England if:
- your household earns £80,000 a year or less or £90,000 a year or less in London
- you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
With Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared Ownership properties are always leasehold.
Only military personnel will be given priority over other groups through government funded Shared Ownership schemes. However, councils with their own shared ownership home-building programmes may have some priority groups, based on local housing needs.
How to apply
To buy a home through a Shared Ownership scheme contact the Help to Buy agent in the area you want to live.