Shared Ownership Guide 2025 — Buy With a Smaller Deposit

Shared ownership lets you buy a share (10–75%) of a property and pay subsidised rent on the rest. Ideal for those who can't afford a full deposit. Here's everything you need to know.

✓ Updated June 2025·✓ FCA regulated partners

⚡ Quick Answer

Shared ownership lets you buy between 10% and 75% of a home and pay rent on the rest to a housing association. You only need a 5–10% deposit on your share, not the full property value. Eligibility: household income under £80,000 (£90,000 in London), and you must not own another property.

How Shared Ownership Works

  1. Find a shared ownership property through a housing association
  2. Buy a share (typically 25–75%) with a mortgage
  3. Pay subsidised rent on the remaining share to the housing association
  4. Buy more shares later ("staircasing") until you own 100%
💡

Costs to Budget For

Monthly costs = mortgage payment + rent on unsold share + service charge + ground rent. These combined can be higher than a full mortgage payment. Always compare total monthly costs carefully. Full GOV.UK shared ownership guide ↗

Eligibility for Shared Ownership

  • Household income: under £80,000/year (£90,000 in London)
  • You must not currently own a home
  • UK citizen or have indefinite leave to remain
  • Ability to obtain a mortgage for your share
  • Some schemes prioritise key workers, those with disabilities, or local connections

Shared Ownership vs Help to Buy vs Standard Mortgage

Shared OwnershipStandard Mortgage (95%)
Min deposit5–10% of share5% of full price
Monthly costsMortgage + rent + service chargeMortgage only (+ leasehold charges)
OwnershipPartial, growing via staircasingFull from day one
Property typesNew builds & some resalesAll property types

Frequently Asked Questions

Yes. You can sell your share back to the housing association (who has first refusal for a set period) or on the open market. If you've not staircased to 100%, the housing association must approve the new buyer. The process is similar to a standard sale but with extra steps.
Staircasing is the process of buying additional shares in your property. You can buy shares in 1% increments (for some properties) or larger amounts. Each purchase requires a new valuation and potentially a new mortgage. Many people aim to staircase to 100% to own outright.
Shared ownership mortgages are offered by most high street lenders at the same rates as standard mortgages. Leeds Building Society, Halifax, Nationwide and Santander all offer shared ownership products. The mortgage is secured against your share of the property only.
Key takeaways
  • Get a soft-search decision in principle before house-hunting — it costs nothing and reveals problems early
  • Loan-to-value bands (95/90/85/80/75%) drive pricing — a small extra deposit can cross a cheaper band
  • Start remortgage shopping 6 months before your fix ends — you can lock now and switch if rates fall
  • Whole-of-market brokers see deals comparison sites never list, especially for non-standard income

Read This Before You Apply

Affordability rules changed materially after the 2022–23 rate cycle. Lenders now stress-test your payments at a notional higher rate, and your outgoings matter as much as income. Trimming commitments 3 months before applying genuinely increases what you can borrow.

Buying new-build changes the process: developer deadlines (typically a 28-day exchange requirement), incentives that lenders may deduct from the valuation, and the need for extended offer validity. Use a broker experienced with new-build timescales.

Compare & Save Today

We compare the UK's leading providers — free, with no credit impact

MoneySuperMarket

Compare 14,200+ mortgage deals

Free · No Credit Impact
Compare Mortgage Deals →

L&C Mortgages

UK's largest fee-free mortgage broker

FCA Authorised · Fee-Free
Get Free Mortgage Advice →

Habito

Online mortgage broker — whole of market

Free Service · 5★ Rated
Find My Best Rate →

Trussle

5-min mortgage check — no credit impact

Soft Search Only
Check My Eligibility →

* Links marked with ↗ may earn FindYourPPI.com a referral fee at no cost to you. We only feature FCA-authorised providers. Learn more.

🎯 Free — No Obligation

Get Your Free Financial Quote

Tell us what you need and we'll match you with FCA-authorised advisers who can help — completely free.

  • ✅ No credit check to enquire
  • ✅ FCA-regulated advisers only
  • ✅ Free, no-obligation quotes
  • ✅ Response within 24 hours

🔒 Your data is safe. We never sell your information to third parties.

Free Mortgage Quote Compare 14,200+ deals in minutes
Get Quote →

Get Expert Help Today

Compare 14,200+ deals from 47 lenders — always free, no credit check required.