New vs Old Shared Ownership Model: What Do They Mean?
If you’ve been looking into Shared Ownership, you may have heard talk about ‘old’ and ‘new’ models, you’re not alone. It can sound confusing at first but don’t worry, we’re here to help explain the similarities, differences and exactly what the terminology means.
Shared Ownership has been helping people find their perfect home for years, offering a way to buy a home without the full upfront cost. But in 2021, the government introduced some big updates under the Affordable Homes Programme 2021–2026 which is designed to make the process even more flexible and accessible.
So, what’s changed and how might it affect you when buying with Southern Housing New Homes? Well, let’s break it down:
The Old Shared Ownership Model
Shared Ownership works like this: buyers could purchase a share of a home (usually between 25% and 75%) and pay a subsidised rent on the rest. Over time, they could buy more shares through a process known as staircasing until they owned 100% of their home.
Key features of the old model include:
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Minimum initial share: 25%
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All repairs and maintenance were the buyer’s responsibility just like any homeowner
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Staircasing could only be done in 10% (or larger) chunks
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Deposits were based on the share being purchased
This ‘old’ model worked well for many, but the larger initial shares and repair costs could make things trickier for first-time buyers.
The New Shared Ownership Model
Introduced under the government’s Affordable Homes Programme 2021–2026, the new model was designed to remove some of those early barriers and make homeownership more within reach.
Here’s what’s new:
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Lower entry point: You can now start with just a 10% share
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Smaller staircasing steps: Increase ownership in 1% increments, giving you more control over when and how you buy more shares
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Repair support: For the first 10 years, landlords (like housing associations) cover certain essential repairs
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Flexible deposits: Since deposits are based on the share you buy, starting smaller means a much lower upfront cost
In short, it’s designed to help you ease into home ownership with fewer upfront costs and more flexibility as your circumstances change.
What's 'Phase Four' All About?
You might hear people mention Phase Four, this simply refers to the government’s Affordable Homes Programme (2021–2026), which introduced these updated terms.
Homes funded under this programme use the new model, while those funded earlier may still follow the old one. When looking at Shared Ownership homes, including those with Southern Housing New Homes, it’s always worth asking which model applies, so you know exactly what to expect.
What This Means for You
Whether you’re just starting your home ownership journey or already exploring your options, it’s important to know which Shared Ownership model applies to the home you’re interested in.
The new Shared Ownership model can offer some added benefits, such as a lower deposit, smaller steps toward full ownership, and early repair support, all designed to make the process a bit simpler and more manageable.
That said, the old model is still in place for many existing homes and continues to provide a great route to owning your own place. Whichever model applies to you, Shared Ownership is all about helping you find a home that fits your lifestyle, your budget, and your goals.
Ready to Learn More?
If you’d like to explore how Shared Ownership works in more detail, including eligibility, benefits, and next steps, check out our buying guides or get in touch with the Southern Housing New Homes team. We’re here to make homeownership a little less confusing, and a lot more achievable.