What is Shared Ownership?  

Shared ownership is a 'part buy, part rent' way of owning your own home for a smaller upfront payment - making it easier for buyers to get on the property ladder.

Shared ownership explained

Shared Ownership is a way you can own your own home. Buying a part and renting the rest is a simple and manageable way to start out on the property ladder. So, what does ‘Shared Ownership’ mean? When buying a Shared Ownership home, initially you can buy anywhere between 10% and 75% of the home. You would take out a mortgage for the share you are buying, or in some cases you can be a cash buyer. On the outstanding percentage of the property that you don’t yet own, you pay a subsidised rent. 

What does 'Part buy, Part rent' mean?

Shared ownership is sometimes called ‘part buy, part rent’ which means is that you buy a share, while you rent the rest of the property.

For example:

You buy a 40% share of a £150,000 property, so your share is worth £60,000. The rent is charged at a rate of 2.75% on the £90,000 share that is owned by the social housing provider (Sage Homes, of course!). This would mean your rent is £2,475, spread over the year, so £206.25 a month.

If you've borrowed money to fund buying your share of the property you will also make mortgage repayments on top of this rent. If you'd put down a 5% deposit, you'd need to make repayments on a £57,000 mortgage.

Why should I buy a shared ownership home?

There can be many advantages of shared ownership. It can enable you to get onto the property ladder more quickly than you might if you were buying a home outright. You can buy additional shares as time goes on meaning you save more or pay off more of your mortgage. It may be cheaper than renting (but not always).

The deposit on a shared ownership house will be much smaller, as the deposit is calculated from your percentage share.

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Residents' experiences

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“It’s perfect for someone buying on their own for the first time, and it’s so much cheaper than renting – the flat in Epping I had before was £900 a month before bills, and it was a tiny little flat.”
Lucy Chandler, HarlowSHARED HOUSING CUSTOMER
“It’s nice having your own independence and having no-one to answer to; I can do whatever I want with it. I can paint the walls whatever colour I want, and I’m doing that. It’s great having friends over for drinks – and that I can leave stuff in the fridge and know it will still be there in the morning!”
Michelle Surgenor, EssexShared Housing Customer
“Finding this home with Sage means security, peace of mind, having my own space and affordable rent. It is wonderful."
Biola Edosa, SussexShared ownership customer