Shared ownership explained: how it works and who it’s for
Buy a share of a home (usually 25–75%) and rent the rest - shared ownership can get you onto the ladder with a smaller deposit. The full pros, cons and costs.
2 min read · Updated 7 August 2026 · By Dwellmark Editorial
Shared ownership lets you buy a share of a home - usually between 25% and 75% - and pay rent on the rest. It is aimed at people who can afford a mortgage but not a whole property, and it can get you onto the ladder with a much smaller deposit.
How it works
You take out a mortgage on your share and pay subsidised rent on the part you don’t own (typically around 2.75–3% of the unowned share’s value per year). You own your share outright - it’s yours to sell, though the housing association usually has first refusal. Over time you can buy more shares - called staircasing - up to 100%.
Who qualifies
- First-time buyers, or previous owners who can’t afford to buy now
- Most schemes cap household income at around £80,000 outside London and £90,000 in London - check your local provider’s exact rules
- You must be unable to afford a suitable home on the open market (the provider checks this)
- New-build homes, usually leasehold, through a housing association or developer
The costs
| Cost | What to expect |
|---|---|
| Deposit | 5–10% of your share (not the full value) |
| Rent on unowned share | ~2.75–3% of that share’s value per year |
| Service charge | £50 – £200+ per month (leasehold) |
| Stamp Duty | Pay on the full market value OR on each share (see below) |
| Staircasing costs | Valuation + legal fees each time you buy more |
The pros and cons
| Pros | Cons |
|---|---|
| Smaller deposit needed | You only own part - the rest is rented |
| Below-market rent on the rest | Ground rent and service charges on top |
| Staircase to 100% when you can | Leasehold terms (and lease length) matter |
| First refusal rights for providers | Selling can take longer (provider must decline first) |
Is it right for you?
Shared ownership works best for people with a steady income, a modest deposit and plans to stay put for a few years. It’s less flexible than full ownership: moving is slower, and the rent plus service charge plus mortgage can add up. Get the full breakdown in writing from the provider - rent, service charge, ground rent and any future increases - before you commit.
Source: GOV.UK - shared ownership — Scheme rules checked August 2026
Source: MoneyHelper - shared ownership — Costs and staircasing guidance checked August 2026
How much deposit do you need?Deposit sizes and where the money can come from.Leasehold vs freeholdShared ownership homes are usually leasehold - know what that means.
Sources
- GOV.UK - shared ownership — Scheme rules checked August 2026
- MoneyHelper - shared ownership — Costs and staircasing guidance checked August 2026
Keep reading
Ground rent problems: doubling rents, disputes and your rights
A £250 ground rent that doubles every 10 years can make your flat unsellable. How ground rent works, the 2024 reforms, and what to do if you’re trapped in a bad lease.
Property chains explained: how they work and how to survive one
Your buyer needs to sell, their seller needs to buy - a chain links every move to everyone else’s. Why chains collapse, how to protect yourself, and when to break the chain.
How to buy a house with a partner: ownership, money and the paperwork
Joint tenants or tenants in common? Who pays what? And what happens if you split? The financial decisions every couple should make before buying together.
Moving house: the complete 8-week checklist
From booking removals to redirecting post and reading the meters - the full moving house timeline, week by week, so nothing falls through the cracks on completion day.