The aspiration to own a home is a cornerstone of many people's dreams. However, with recent rises in property prices, the full cost of homeownership can seem daunting, if not outright unattainable, for many.

This is where the concept of shared ownership shines as a beacon of hope, offering a practical route to get onto the property ladder. So what is it all about?

What is Shared Ownership?

Shared ownership is a government-backed scheme designed to assist buyers who cannot afford the mortgage on 100% of a home. Through this scheme, you can purchase a share of a property - typically between 10% and 75% - and pay rent on the remaining share. The lower threshold for a deposit and reduced mortgage payments make this a viable option for many aspiring homeowners.

Who is Eligible for Shared Ownership?

Eligibility is straightforward: Your household income must be £80,000 a year or less (£90,000 or less in London). You cannot afford the entirety of the deposit and mortgage payments for a home that meets your needs. You're a first-time buyer, you’ve owned in the past but can't afford to buy now, or you're an existing shared owner looking to move​​.

Benefits of Shared Ownership Affordability:

With shared ownership, the amount required for a deposit is significantly less than buying a home outright, lowering the initial financial barrier.

  • Flexibility: You can buy additional shares in your property over time, a process known as 'staircasing'. This means your rent payments decrease as you buy more of the property​​.
  • Stability: Most shared ownership homes are leasehold, meaning you will have a long-term lease, often running for a century or more, providing stability and peace of mind​​.

How Does Staircasing Work?

Staircasing allows you to gradually increase the share you own in the property. The more of the property you own, the less rent you pay. Eventually, you could own 100% of your home, eliminating the rental portion altogether.

Shared Ownership Costs

Aside from the purchase price of the share you buy, there will be a monthly service charge and ground rent, which are additional costs for the maintenance of the property and communal areas​​.

Is Shared Ownership Right for You?

Shared ownership is a stepping stone to full homeownership. It's suitable for people who can afford to take on a mortgage but cannot stretch to the high deposit typically required to buy a home outright.

Shared ownership is a ladder to help you climb up to your dream of homeownership. It offers a balanced solution, bridging the gap between renting and buying. By understanding and utilising this scheme, the goal of owning a home becomes more accessible to a wider audience, providing a solid foundation for your future.

Get Started on Your Journey

If shared ownership sounds like it could be the key to unlocking your property dreams, the next step is to explore your options. Get in touch with our WhiteKnights team, and we'll get you started!


Phone: 0118 334 7410