At Friends Capital, we often speak to people who feel priced out of the housing market. The good news? There are government-backed schemes designed to help, and the Shared Ownership Scheme is one of the most popular. It can be a stepping stone towards full home ownership without needing a hefty deposit or massive mortgage.
If you’ve ever thought, “I’ll never afford a home of my own”, this guide is for you. We’ll walk you through everything you need to know: how the scheme works, who qualifies, the pros and cons, and how we can help you get started.
The Shared Ownership Scheme allows you to buy a share of a property (between 10% and 75%) and pay rent on the remaining portion, which is owned by a housing association or local council. Over time, you can choose to buy more shares in the property – a process known as staircasing – until you own it outright.
It’s a great option if you:
You’ll need a mortgage for the share you purchase and will pay a reduced rent on the rest.
Here’s how it works in practice:
The Shared Ownership Scheme isn’t just for first-time buyers, but it is aimed at people who would otherwise struggle to buy on the open market.
You may qualify if:
Shared Ownership homes are usually leasehold properties – this is important to understand when considering long-term costs like ground rent or service charges.
Let’s break it down with an example.
Imagine you’re buying a Shared Ownership property valued at £240,000:
Your total monthly costs might look like this:
This is often more affordable than paying rent in the private market or getting a full mortgage.
One of the biggest benefits of Shared Ownership is that you can gradually increase your share in the property.
This process is known as staircasing. You can usually do this in 10% increments, and every time you staircase, your rent reduces because you now own a larger share.
Eventually, many people staircase to 100% ownership, at which point you no longer pay rent. You may still pay service charges if your home is leasehold.
Things to bear in mind:
In our experience at Friends Capital, Shared Ownership is ideal for:
If you know you want to eventually own your home outright but need time to get there, Shared Ownership gives you that pathway.
Shared Ownership homes come in all shapes and sizes, including:
Many homes are prioritised for local residents, key workers, or those with specific needs. New-builds are often the most common, but resale properties may offer better value in some areas.
Yes, but there are a few rules to follow.
The price will be based on the market value of your share, which may go up or down over time.
Selling a Shared Ownership home can take a little longer due to these extra steps, but it is perfectly doable – and we can help guide you through it.
Before committing, be sure to:
At Friends Capital, we always recommend getting independent legal advice before signing.
We’ve helped many first-time buyers secure their first home through Shared Ownership.
Here’s how we support you:
We understand this process inside out, and we’ll break down the jargon so you feel confident every step of the way.
The Shared Ownership Scheme is a powerful tool for those who want to get on the property ladder but are struggling with affordability. While it comes with some complexities, the benefits can outweigh the drawbacks if you go in with your eyes open.
At Friends Capital, our job is to make that journey easier. Whether you’re buying your first home, planning to staircase, or wondering if Shared Ownership is right for you, we’re here to help with honest advice and tailored support.
Ready to explore your options?
Get in touch today and speak to one of our friendly mortgage advisers.