Shared ownership schemes

Shared owners buy a share in their homes and pay rent for the rest.

You usually start by buying 10% to 25% of the property. You may be able to buy more shares over time. This is called staircasing.

Shared ownership schemes are usually run by housing associations. There are some private schemes.

Shared ownership properties are sold as leasehold. Find out more from LEASE.

How to get shared ownership

You might get shared ownership if you:

have never owned a home
earn less than a certain amount
used to own a home but cannot afford one now
own a shared ownership home and want to move

Different schemes have their own rules for who can apply.

Some schemes give priority to:

people in key jobs, such as firefighters, teachers, nurses, and people in the armed forces
existing social housing tenants
people with disabilities

Find out more about shared ownership on GOV.UK

How much does shared ownership cost?

Costs include:

mortgage repayments for your share
rent to the housing association
service charges
ground rent
insurance

You have to pay valuation and legal fees when you buy a share.

Repairs and improvements

You are usually responsible for repairs and improvements in your home.

If you live in a house, repairs include the structure, for example a roof.

If you live in a flat, you are responsible for all repairs inside your home.

Your housing association must carry out repairs and maintenance of the building and communal areas. Your service charges cover the cost.

Sometimes your housing association might support you with repairs in your home for some time after you buy it.

Check your agreement for details about repairs.

Damage to a neighbour's home

Your agreement should say who must do repairs if you damage another flat, for example with a water leak. The buildings insurance could cover this.

Improvements

Ask the housing association if you want to do major improvements, such as a new kitchen or knocking down a wall.

Lodgers and subletting

You usually can rent out a room to a lodger.

Check if you need to:

get your housing association’s permission
inform your home insurance provider

You cannot usually rent out your whole home. You could be in breach of your mortgage contract and your landlord could try and evict you.

You may be allowed to rent out your home in exceptional circumstances. You must get permission in writing first.

Problems paying rent and mortgage

Speak to someone as soon as you have problems.

The housing association might tell your mortgage lender that you are in rent arrears.

Find out how to deal with missed mortgage payments.

A debt adviser could help you find a way to repay the arrears.

Contact the National Debtline for debt help and advice

Help with rent

You could get:

Help to pay your mortgage

You could get a support for mortgage interest loan to help with your mortgage payments.

As a last resort, the housing association might buy back some or all of your shares in your home. This is called downward staircasing. It means your mortgage payment goes down but you own a smaller share of the property.

A debt adviser can talk to you about options if you miss rent or mortgage payments.

Breathing space could pause payment demands and eviction while you get advice.

If your mortgage lender wants to evict you

Talk to your lender. There are things you can do to keep your home.

Find out what to do if your mortgage lender starts court action.

If your landlord wants to evict you

Your housing association might take steps to end your lease if you:

have rent arrears
break your lease agreement

Your housing association must ask a tribunal to confirm that you have broken the terms of your lease before they can take action. This is called a 'forfeiture'.

Your housing association might tell your mortgage lender that they want to end your lease.

LEASE have more advice on the forfeiture process.