An affordable route to home ownership, Shared Ownership allows you to buy a share of a property and pay rent on the remaining share. This initiative helps you step onto the property ladder with a smaller deposit and lower monthly costs.
Struggling to get a large enough mortgage to buy a home on the open market? Perhaps you’ve a good income but you’ve not managed to save enough deposit? Or maybe you find that homes in the area you want to live are simply too expensive? Shared Ownership could be your answer.
Imagine yourself living in the countryside, the capital or even five minutes from the beach we’ve got new homes available in all those key locations. If you’d rather move into a pre-loved home, we’ve a range available on our resales website.
Despite the term "Shared Ownership," it's important to understand that it doesn’t mean you will be sharing your home with others. Shared Ownership is like buying shares in a business: you start with an initial investment and can increase your stake over time. The main difference is, you’re unable to own shares in multiple homes like you can with multiple businesses.
Shared Ownership terms and conditions apply. Please refer to Southern Housing’s Shared Ownership Sales Policy for guidance on eligibility, the allocation of homes, our first come first served priority and assessing affordability, including our approach to 100% mortgages and cash buyers.
Minimum and maximum share values apply, and rent is payable on the unbought share. During the affordability stage we will work with you and our panel mortgage advisor to determine the optimum share you can purchase. Please refer to Southern Housing’s Shared Ownership Sales Policy for more details.
Shared Ownership FAQs
Firstly, you may want to check your eligibility with a financial advisor and then, if eligible, you’ll be in a good position to reach out to our team who’ll be able to help you with the next stages of your journey. You can apply for Shared Ownership on our website by completing an application form or speaking to our dedicated sales team by phone on 0300 555 2171 or by email, at sales@southernhousing.org.uk.
Most Shared Ownership homes are purchased with a mortgage. However, it is possible for cash buyers to buy a portion up to 75% of a Shared Ownership home without a mortgage. They would still have to make rental payments on the remaining portion they don’t own.
You can conduct an eligibility check via the UK Government website here, or speak to a financial advisor who may conduct an assessment. Generally, the basic criteria require that you are at least 18 years old, have a steady income, do not currently own a home (or are in the process of selling it) and have what is considered a lower household income (£80,000 outside of London, £90,000 in London). Specific eligibility details can be found on our website.
Shared Ownership isn’t exclusive to first-time buyers, but it is suited to those looking to get on the property ladder who may not be able to buy a home otherwise. Those who already own a home, however, must have sold already, or be in the process of selling their home.
You must be at least 18 years old. There’s also a separate Shared Ownership Scheme for those aged 55+.
Yes, you must meet the above eligibility criteria, which require that you are no younger than 18, are unable to afford to buy a suitable property outside of the shared Ownership iniative, and do not own another home that you are not in the process of selling. Find the full list of eligibility criteria here.
Only properties that are built specifically for the purpose of Shared Ownership may be bought under the scheme. Shared Ownership properties are typically new builds but can also be resales. Check our properties page or available properties.
Check out the properties page on our website to view our current Shared Ownership listings or visit property portals such as Zoopla or Share To Buy (a specialist Shared Ownership Portal). You can also sign up for property alerts or speak to an estate agent to stay informed about new opportunities under the initiative.
It can vary by development, so it’s worth checking in with us. In most cases 25% is the minimum share you can purchase to start with. Please refer to Southern Housing’s Shared Ownership Sales Policy for further guidance.
As a Shared Owner, you’re responsible for maintaining and repairing your home, just like any other homeowner and regardless of what share you own. However, it’s always worth checking your building warranty: some costs may be covered and some things may benefit from an initial repair period.
The good news is, that Shared Ownership can work out cheaper than private renting. The rental cost of a Shared Ownership property is subsidised by the Government and there are restrictions on rent rises. It also allows you to build equity in your home, holding part of it as an asset while paying subsidised rent on the remaining share, which is typically more cost-effective in the long term.
Feel free to start researching this season’s colour schemes: you can decorate and make improvements to your Shared Ownership home as you desire. However, your Shared Ownership lease will have details about major alterations to the property, e.g. new flooring, structural changes, which you may need to get permission for before work commences.
Yes, but you need permission to make significant alterations to your home, with structural changes typically not allowed. Our friendly team will be able to advise on any specific alterations which you may have in mind.
Don’t panic! Shared Ownership doesn’t mean shared living. Shared Ownership properties can be purchased individually or with a partner or family member. It's a flexible option that often helps single buyers to get on the property ladder.
Some furry friends are allowed in certain Shared Ownership properties, but it's essential to check with us and review your lease for any specific restrictions.
Leasehold ownership is a long tenancy. Shared Ownership properties are typically leasehold because of the rented part of the property, giving you the right to occupy the home for a longer period, or for the ‘term’ of the lease. As part of the Government’s Affordable Homes Programme, it is expected that lease terms will be extended to 999 years as standard. Your lease will outline your rights and responsibilities as a homeowner.
A resale property is a Shared Ownership home that is being sold by the current owner. You can purchase their share and take over their lease.
Staircasing is the process of purchasing additional shares in your Shared Ownership property, helping you increase your ownership percentage over time. For example, if you started by holding 25% of your home’s lease, you could buy another 25% share, which would mean you hold a 50% share. Dependent on the terms of your lease, you can even build up to 100% ownership of your home.
You can sell your Shared Ownership home at any time, and we’re here to help you do so. We’ve a unique database of people who are looking for a Shared Ownership home, and under the terms of your lease, you’ll have a 8 weeks where we can assist you to find another Shared Ownership buyer for your property. We’ve a great track record of finding buyers within this period, but if we’re unsuccessful, you’re allowed to sell your Shared Ownership home on the open property market at the full market value.
In most cases, subletting in a Shared Ownership home isn’t allowed. It could be a condition of your mortgage as your Shared Ownership home is designed to be your primary residence. Under some exceptional circumstances, you may be able to sublet for a specified period, in which case you’ll be required to obtain written permission first. Renting individual rooms (taking a lodger) can be agreed but be sure to check your lease agreement before doing so.
You usually need to pay a monthly service charge when you buy a Shared Ownership home. A service charge covers the cost of keeping those shared areas and facilities in your development looking beautiful, such as, communal gardens, lifts and other communal spaces. You’ll be able to find more information around the specifics of your service charge within your lease agreement.
As a Shared Owner, you’re responsible for paying your mortgage repayments, rent, service charge and insurance. It’s also your responsibility to keep the property in good repair. You’ll need to seek permission before carrying out any structural changes. And to allow us reasonable access to the property if given advance notice, we’ll always give a clear explanation why we want access, so we won’t be dropping by unannounced – we’ll leave that to your family members. It’s also expected that you will not be involved in any anti-social behaviour at the property and that you’ll give us notice if you intend to sell your share in the house.
Without a property chain to slow down the process, buying a home with Shared Ownership is typically much quicker than buying on the open market. An average timeframe can range from one to three months from the initial application to completion, while buying a home outright takes on average six months to complete. The time can vary depending on several factors.
While not legally required, it’s highly recommended that a survey is conducted on any new build property before purchase. This can help identify any potential issues that may have been missed or caused during the building process, such as cosmetic issues with paint, or misaligned fixtures like handles and hinges. Any issues found during a survey tend to be minor, but they’re also an opportunity to reveal more serious concerns, like structural problems. It’s important that any issues are fixed before you move in so that you can relax into your dream new home.
Unlike buying on the open market, with Shared Ownership, you only pay a deposit on the share you're purchasing, typically 5% to 10% of that portion's value. For instance, if you buy a 25% share of a £300,000 home, your deposit would range from £3,750 to £7,500. Remember to budget for other costs like stamp duty, legal fees, and moving expenses.
While we specialise in new build homes, Shared Ownership can apply to both new build and resale properties that were bought as part of the initiative and the owner wishes to sell on. It depends on what’s available in your desired location.