Introduction.
Shared ownership lets you buy part of a home and pay rent on the rest, then buy more over time.
In London, where full ownership can feel out of reach, shared ownership is one of the most common routes onto the ladder. You need a smaller deposit and a smaller mortgage, because you are only buying a share.
It is not the same as owning outright. You will usually pay rent and a service charge, there are rules on what you can do with the property, and selling works differently.
This guide explains who can apply, how the mortgage works, what it really costs each month, and how staircasing gets you to full ownership.
The smallest initial share you can buy under the current shared ownership model in England.
01How shared ownership works.
You buy a share of the home, usually from a housing association, and pay rent on the share you do not own.
- Your share. Typically between 10% and 75% of the full market value.
- Your mortgage. Covers your share, less your deposit.
- Rent. Paid to the provider on the share you do not own.
- Service charge. Usually payable on the whole home, not just your share.
- A lease. Shared ownership homes are leasehold, including most houses.
Adviser’s note
Look at the total monthly cost, not just the mortgage. Rent and service charges can be a large part of it, and both usually rise each year.
The lease length on most new shared ownership homes under the current model.
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- 02Who can apply
- 03The mortgage and the costs
- 04Staircasing to 100%
- 05Selling your share
- 06Is it right for you
- 07Shared ownership, illustrated
- 08Checklist and glossary
02Who can apply.
Shared ownership is designed for people who cannot afford to buy outright. Providers check eligibility before you apply.
| Test | Current position in England |
|---|---|
| Household income | £80,000 or less, or £90,000 or less in London |
| Home ownership | First-time buyers, former owners or existing shared owners |
| Affordability | You must be unable to buy a suitable home outright |
| Local priority | Some schemes favour local residents or key workers |
Current limits as at November 2026. Rules differ in Scotland, Wales and Northern Ireland.
Affordability checks
Providers often ask an independent adviser to confirm the share you can afford. We can carry out that assessment and arrange the mortgage together.
You will usually need to show you have not got enough savings to buy a suitable home without help.
03The mortgage and the costs.
Only some lenders offer shared ownership mortgages, and they assess the rent and service charge alongside the loan.
| £500,000 flat, 30% share | Amount |
|---|---|
| Your share | £150,000 |
| Deposit, 10% of your share | £15,000 |
| Mortgage | £135,000 |
| Rent on £350,000 at 2.75% a year | £802 a month |
| Mortgage at 4.5% over 30 years | £684 a month |
| Service charge, say | £200 a month |
| Total monthly cost | £1,686 |
Illustrative only. Rent levels and service charges vary by scheme.
What lenders check
- That you can afford the mortgage, rent and service charge together.
- That the provider’s lease meets their requirements.
- Deposits from 5% of your share with some lenders.
04Staircasing to 100%.
Staircasing means buying more of your home. Each step reduces your rent, and most homes can be staircased to full ownership.
Get a valuation
An independent RICS valuation sets the current price of the extra share.
Valid for three monthsArrange the money
Savings, a further advance or a remortgage to a new lender.
We compare optionsComplete the purchase
Solicitors handle the legal work with your provider.
Rent goes down- Small steps. Under the current model, you can buy as little as 1% a year for the first 15 years, with lower fees.
- Larger steps. Usually at least 5% or 10% at a time.
- The price. Based on the value at the time, so it rises or falls with the market.
Restrictions
A few homes in rural areas can only be staircased to 80%. Check your lease.
05Selling your share.
Selling a shared ownership home has an extra stage: your provider usually gets the first chance to find a buyer.
- Nomination period. The provider looks for an eligible buyer first, for a set period.
- Open market. If no buyer is found, you can usually sell through an estate agent.
- Selling after staircasing to 100%. You can sell like any other owner.
- Value. You receive your share of the current value, less your mortgage.
Moving on
Some owners staircase fully before selling to widen the pool of buyers. We can show you whether the numbers work.
Subletting
Shared owners usually cannot let their home without the provider’s permission, which is normally only given in specific circumstances.
06Is it right for you.
Shared ownership is a strong option for many London buyers, but it is worth comparing with the alternatives.
| Option | Worth comparing when |
|---|---|
| Full ownership with a gift | Family can help with the deposit |
| Joint borrower sole proprietor | A relative can add income |
| 95% mortgage | Your income supports the full loan |
| First Homes or other schemes | Available in your area |
Adviser’s note
We compare the total monthly cost and the long-term position of each option, so you can see what shared ownership really offers you.
Our Gifted Deposits Guide and Joint Borrower Guide explain the alternatives.
07Shared ownership, illustrated.
A teacher buying in East London
A secondary school teacher earning £48,000, with £20,000 saved, buying a new-build one-bedroom flat.
- Full value
- £450,000
- Share bought
- 35%, or £157,500
- Deposit and mortgage
- £15,750 deposit, £141,750 mortgage
- Monthly cost
- Mortgage, rent on the remaining 65% and service charge, within her budget
- Plan
- Staircase in 5% to 10% steps as her pay rises, aiming for full ownership
This example is illustrative and does not describe a real client.
08Checklist and glossary.
Documents to have ready
- Confirmation of eligibility from the provider
- Photo ID and proof of address
- Three months’ payslips or accounts
- Three months’ bank statements
- Evidence of your deposit
- The provider’s key information document
- Details of rent and service charge
- Your solicitor’s details
Glossary
- Shared ownership
- Buying a share of a home and renting the rest.
- Provider
- The housing association or landlord that owns the rest.
- Staircasing
- Buying further shares in your home.
- Nomination period
- Time for the provider to find a buyer for you.
- Market value
- The full price of the home on the open market.
- RICS valuation
- An independent valuation used to price shares.
- Service charge
- Your contribution to running and maintaining the building.
- Further advance
- Extra borrowing from your current lender.
Related: First-time buyer advice · First-Time Buyers Guide · All guides