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Shared Ownership
The Shared Ownership scheme is designed to help first-time buyers purchase affordable new build houses. Find out how you can benefit from part buy part rent today.

What is Shared Ownership?

Shared Ownership is a government-backed scheme where people buying their first home (or are returning to the property market, buying again after the breakdown of a relationship), who are unable to afford a suitable home at the full market price, can purchase a share of the property and pay a subsidised rent on the remainder.

This is sometimes referred to as ‘part-buy/part-rent’.

How does Shared Ownership work?

Many new homes developments are legally obliged to include a proportion of Shared Ownership properties, constructed by the housebuilder but allocated to a housing association to sell. Shared Ownership is not open to everyone – though rules have been eased in recent years, there are still criteria that potential buyers must meet before being accepted into the scheme.

The main features of Shared Ownership are:

  • You initially purchase between 25% and 75% of the market value of the home, with a deposit and mortgage. The eligibility process will also determine how much will be required to pay at this stage, though don’t forget there will be legal fees and other charges to budget for in addition to your deposit.
  • You pay a subsidised rent on the remainder, calculated at 3% per annum of the value of the rented proportion of your property – this equates to around 80% of the open market rate.
  • You can buy an increased share of you home at a later date (a process known as ‘staircasing’), up to 100% if you wish.
  • When you sell your home, you’ll receive the percentage of the sale price that you own.
  • If there are service charges and ground rent to pay, you’ll be responsible for 100% of those no matter what percentage of the property you own.

Eligibility for Shared Ownership

Here are the main qualifying criteria for the Shared Ownership initiative:

  • Your household income (the combined income of everyone who will be living in the home) is no more than £80,000 per year, or if you are in London, this maximum household income is £90,000 per year
  • You are unable to purchase a suitable home to meet your housing needs on the open market
  • You do not already own a home or you will have sold your current home before you purchase a Shared Ownership property.

How does Shared Ownership help first-time buyers?

The aim of the scheme is to make buying a home affordable for those on a modest income, and it does this by reducing some of the money required to buy a home on the open market. This includes the initial deposit and the monthly rents once you’ve purchased.

Under Shared Ownership, you initially buy a stake of between 25% and 75% of the full market value of the property by putting down a deposit and using a Shared Ownership mortgage. You then pay a subsidised rent on the remaining share which is owned by a local housing association.

Case Studies
Charlotte in her new home at The Gallery
17 December 2019
Charlotte had her heart set on a home at Peabody’s Camberwell development, The Gallery...

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Steven in his new Persona home
10 December 2019
Thanks to Persona’s Shared Ownership scheme, Steven was able to purchase his first home, a two-bedroom house in Kingswood...
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Tom, Jess and George in their new home
12 November 2019
Thanks to Shared Ownership, Tom and Jess have been able to purchase their first home in Horsham...
Read more 
FAQ
How does Shared Ownership help first-time buyers?
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