TL;DR: Shared Ownership is a part-buy, part-rent scheme run under the government's Affordable Homes Programme in England, with separate equivalents in Wales, Scotland and Northern Ireland. A buyer purchases a share of a leasehold property (commonly between 10 and 75 percent under current rules) with a deposit and a mortgage, and pays subsidised rent on the share they do not own. The buyer can usually buy more shares later in a process called staircasing. Service charges and repair costs apply, and on most newer leases the landlord covers some repairs in the early years. The home is leasehold, the lease runs for many decades, and resale is normally controlled by the housing provider.
Last reviewed May 2026
Shared Ownership is the longest-running affordable home ownership scheme in the UK. It was designed for people who can afford a mortgage on part of a home but cannot raise the deposit and borrowing needed to buy the whole property at full market price. Under the scheme, the buyer takes out a mortgage on a share of the property and pays subsidised rent to a housing provider on the rest.
The scheme has changed over the years. Newer Shared Ownership leases issued under the Affordable Homes Programme that began in 2021 in England include a lower minimum starting share, a 10-year period during which certain repair costs are covered by the landlord, and a more flexible staircasing process that lets buyers acquire additional shares in 1 percent increments. Older leases continue under their own terms.
This guide explains how Shared Ownership works in practice: who the homes are for, what the buyer pays, how the rent and service charges are set, what staircasing means, and how the home can be sold. Devolved equivalents are mentioned where they differ.
Who Shared Ownership is for and the eligibility tests
Shared Ownership in England is generally available to households with a gross annual income of up to 80,000 pounds (or 90,000 pounds in London). Other eligibility tests include not currently owning another home (or being in the process of selling one), not being able to afford the full deposit and mortgage on a home that meets the household's needs at open market price, and being aged 18 or over.
Some homes are prioritised for specific groups. Local authorities can set local connection or employment criteria, and some schemes are reserved for serving members of the armed forces and veterans, key workers, or people moving on from social housing. The provider sets out the local priority order in the marketing of each property.
Devolved nations operate separate schemes. Wales uses Help to Buy Wales and shared equity arrangements alongside Homebuy. Scotland's main equivalents are New Supply Shared Equity (NSSE) and Open Market Shared Equity (OMSE). Northern Ireland operates Co-Ownership through Co-Ownership Housing. The mechanics are broadly similar, but the rules on shares, rent and staircasing differ from England's.
What you actually buy: shares, deposits and mortgages
The buyer purchases a leasehold share of the property. The lease is granted by the housing provider, often a housing association or local authority, who retains ownership of the rest. On homes built under the 2021 to 2026 Affordable Homes Programme, shares can start as low as 10 percent and go up to 75 percent. Older Shared Ownership homes commonly use a minimum share of 25 percent.
The deposit is calculated against the share being bought, not against the full market value. A buyer purchasing a 25 percent share of a 300,000 pound property is buying a 75,000 pound share. A 10 percent deposit on that share is 7,500 pounds, which is what makes the scheme accessible to households who cannot raise a full deposit on the whole property.
The remainder of the share is funded by a Shared Ownership mortgage. Not all lenders offer these. The mortgage is secured against the share owned by the buyer, with the provider's lease taking priority for the unsold portion. Affordability assessments by both the lender and the provider take account of mortgage payments, rent, service charges and other regular costs together.
Rent, service charges and the cost of holding the home
Rent is paid on the share the buyer does not own. The starting rent is set at a percentage of the unsold equity each year, with newer leases under the 2021 to 2026 programme using a maximum of 3 percent of the unsold share's value, although providers may set a lower rate. Older leases vary; many used 2.75 percent.
Annual rent reviews are written into the lease. The standard formula on newer leases links rent to the Consumer Prices Index plus 1 percent. Older leases often used the Retail Prices Index plus 0.5 percent. The exact mechanism is set out in the lease and applies whether the index is rising or falling, although there are usually rules to prevent rent from going down.
The home is also subject to service charges. These cover the cost of maintaining shared parts of the building or estate (such as lifts, communal areas, grounds and insurance) and on flats often include a reserve fund. Service charges are payable in full by the leaseholder, regardless of the share owned. Estate charges and ground rent may also apply, although ground rent on new long residential leases granted from 30 June 2022 is restricted to a peppercorn under the Leasehold Reform (Ground Rent) Act 2022.
Staircasing: buying more of the home over time
Staircasing is the process of buying additional shares in the home. Each staircasing transaction is treated as a property purchase: the share is valued by an RICS surveyor, legal and conveyancing work is required, and there will normally be a fee charged by the provider.
Newer Shared Ownership leases under the 2021 to 2026 programme allow staircasing in 1 percent increments for the first 15 years, with the valuation fee partly subsidised on the smaller staircasing transactions. Older leases typically required minimum staircasing of 5 percent or 10 percent each time.
Most leases allow staircasing all the way to 100 percent, at which point the buyer owns the home outright and rent stops. A small number of older leases include a "staircasing cap" (often at 80 percent) particularly in designated rural areas, where staircasing to 100 percent is restricted to keep homes within reach of local people. The lease will say which applies.
Selling, the resale process and pre-emption
If the leaseholder owns less than 100 percent and wants to sell, the housing provider usually has the first right to find a buyer for an agreed period. This is known as the "nomination period" or pre-emption period and is typically eight weeks. During that window the provider will market the property to other eligible Shared Ownership buyers from its waiting list.
If no eligible buyer is found within the nomination period, the leaseholder can normally sell on the open market, although the new buyer will still take it as a Shared Ownership home unless the seller staircases to 100 percent first. Once the leaseholder owns 100 percent (and the lease does not have a rural staircasing cap), the home can usually be sold like any other leasehold property.
Stamp Duty Land Tax on Shared Ownership purchases is more nuanced than on a standard purchase. The buyer can choose between paying SDLT on the full market value at the start (a "market value election") or paying SDLT only on the share being bought, with further SDLT possibly due on later staircasing transactions. The right approach depends on the buyer's circumstances and the value of the share.
Repairs, alterations and the 10-year landlord contribution
Shared Ownership homes are leasehold and the leaseholder is generally responsible for the inside of the home, including repairs and decoration. On flats, the landlord is responsible for the structure, exterior and common parts, and recovers the cost through the service charge.
For Shared Ownership homes built under the 2021 to 2026 Affordable Homes Programme, leases include a 10-year period during which the landlord covers the cost of essential repairs to certain elements, including the boiler and other key fixtures, up to a fixed annual cap. This was introduced to mitigate a longstanding criticism that Shared Ownership leaseholders carried full repair risk despite owning only a small share.
Major alterations, extensions or significant changes to the property require the landlord's consent under the lease. Permission for cosmetic work is usually granted easily; structural changes are subject to closer review and may require formal approval and additional documentation.
Disclaimer: This article is general information about how Shared Ownership operates in England, with brief reference to the equivalent schemes in the devolved nations. It is not financial, mortgage, tax or legal advice. The terms of any individual Shared Ownership home depend on its lease, which can vary from scheme to scheme. Anyone considering buying a Shared Ownership home should review the lease carefully, take independent legal advice from a conveyancing solicitor, and consider regulated mortgage advice.
Frequently asked questions
What share do I have to buy at the start?
On Shared Ownership homes built under the 2021 to 2026 Affordable Homes Programme in England, the minimum share is 10 percent and the maximum starting share is 75 percent. Older Shared Ownership leases commonly required a minimum share of 25 percent. The share offered on a particular home depends on its lease, the provider and the buyer's affordability assessment.
Is the rent fixed for the life of the lease?
No. The lease sets out an annual rent review formula. Newer leases under the 2021 to 2026 programme link rent reviews to the Consumer Prices Index plus 1 percent. Older leases often used the Retail Prices Index plus 0.5 percent. The exact figures and the review date are written into the lease.
Can I buy more of my home after I move in?
Yes, through staircasing. Newer Shared Ownership leases allow staircasing in 1 percent increments for the first 15 years, with each transaction treated as a small property purchase requiring a valuation. Older leases generally required minimum staircasing of 5 percent or 10 percent. Most leases allow staircasing up to 100 percent, although some homes in designated rural areas have a cap.
What happens to the rent if I staircase to 100 percent?
Once the leaseholder owns 100 percent of the home, no rent is payable to the housing provider on the home itself. The lease continues, and the leaseholder remains responsible for service charges and any ground rent or estate charges that apply. On flats, the home stays leasehold; on most newer Shared Ownership houses, the buyer can usually acquire the freehold.
Is Shared Ownership cheaper than buying outright?
The deposit and the initial mortgage required are smaller than for buying the whole property at market value, which is the main reason buyers use the scheme. Total monthly outgoings, including mortgage, rent and service charge, are not always lower than the equivalent rental or full-purchase cost in the same area. The right comparison depends on local prices, deposit available and the buyer's longer-term plans.
How we verified this
The structure of Shared Ownership in England, the share ranges, rent caps, staircasing rules and the 10-year repair period reflect the model lease published under the 2021 to 2026 Affordable Homes Programme by Homes England, the regulator's published rules and current GOV.UK guidance. The Welsh, Scottish and Northern Ireland equivalents are summarised from the relevant government and provider sources. The leasehold framework, ground rent restrictions for new leases and the role of housing providers reflect the Leasehold Reform (Ground Rent) Act 2022 and existing leasehold law. Specific lease terms vary; the lease itself should always be reviewed before purchase.
