What is shared ownership?  


Shared ownership is an easier way for buyers to get on the property ladder - with a smaller upfront payment and a way to buy your way out of an assured tenancy and to become the owner of your own home.

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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. As an assured tenant you will pay a subsidised rent on the percentage you don't have a mortgage on until you choose to increase the share you buy to 100%.

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. Take a look at our affordability calculator to see what you could be paying every month to get your foot on the property ladder.

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).
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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 OWNERSHIP CUSTOMER
“We were looking to upsize but were struggling to do it without Shared Ownership. It meant a lot to find these houses being built in the village – we would’ve looked at surrounding villages but the best option was staying in High Halden and now we’ll be walking distance of the school.”
Robert Champkins, KentShared Ownership customer
“I went from living in my family home of five to owning my own two-bed flat. It’s a great property in a great space and a great location, and the value for money was great for my situation.”
Abena Kwapong, KentShared ownership customer