Shared Ownership: Your Pathway to Homeownership

Shared Ownership: Your Pathway to Homeownership

The dream of homeownership can seem out of reach for many, especially in today’s climate of high house prices, large deposit requirements, and fluctuating mortgage rates. Shared Ownership offers an alternative solution and a viable pathway to owning your home.  

Let’s explore Shared Ownership, how it works, and who can benefit from this initiative. 


Today's Climate and Why Shared Ownership is Important 

In today’s housing market, many potential homeowners struggle to save for a substantial deposit or secure a mortgage due to high property prices and less favourable mortgage rates. Shared Ownership provides an alternative route. This scheme allows buyers to purchase a share of a property—typically between 25% and 75%—and pay rent on the remaining share. This reduces the initial deposit and mortgage requirements, making homeownership more accessible. 


 Step-by-Step Guide: How It Works   

1. Initial Purchase: Buy a share of a home, usually between 25% and 75%, which means you only need a mortgage for that share. The deposit is also lower than what you would need for a full property purchase. 


2. Paying Rent: Pay subsidised rent on the remaining share of the property. This rent is usually below market rate, making monthly payments more affordable.  


3. Staircasing: Over time, you can buy additional shares in the property (known as staircasing) until you own it outright. The cost of the shares you buy will depend on the market value of the property at the time. 


4. Selling Your Share: If you decide to sell, you only sell the share you own. The value of your share can increase with the housing market, potentially offering a return on your investment. 


Who's Eligible? 

Shared Ownership is designed for individuals who are unable to buy a home on the open market. Eligibility criteria typically include: 

- A household income of less than £80,000 (or £90,000 in London) 

- Being a first-time buyer, or not currently owning a home 

- Demonstrating the ability to afford the monthly costs (rent, mortgage, service charges) via an affordability assessment. 


How Shared Ownership Can Help You Buy in a Desirable Area 

One of the significant benefits of Shared Ownership is that it can make it possible to live in a neighbourhood that might otherwise be unaffordable. By lowering the financial barriers to entry, this  initiative  allows buyers to access homes in more desirable locations, providing an opportunity to enjoy a higher quality of life. 

Shared Ownership is a practical solution for those struggling to get on the property ladder. It offers lower deposits, the flexibility to increase your share over time, and the chance to live in desirable areas. If you’re considering homeownership and want to explore your options, Shared Ownership could be your pathway to achieving that dream. 

Whether you're buying your first property, moving home or investing, our available schemes can make your buying journey even easier. Get in touch with our team to see how they can help you. And discover developments available for purchase now.