Shared Ownership Unpacked
What Is Shared Ownership?
Shared Ownership is a government-backed initiative which allows you to buy a share of a property and pay rent on the remaining share, providing an alternative route to homeownership and private renting. This initiative helps you have a place to call your own, feel more secure than you would renting and build equity.
If you’re struggling to get a large enough mortgage to buy a home on the open market, have a good income but haven't managed to save enough deposit, or find that homes in the area you want to live are simply too expensive, then Shared Ownership could be your answer.
At Southern Housing New Homes, we provide Shared Ownership apartments and houses for sale in various locations, from the city to the countryside and coast. We specialise in new build homes however, we also have a range of pre-loved homes available on our Shared Ownership resale website.
How Does Shared Ownership Work?
Shared Ownership doesn’t mean you’ll be sharing your home with others. It means you’ll purchase part of your home – a ‘share’ – and pay subsidised rent on the part you don’t own, with the option to buy more shares in the future and reduce the rent amount. It’s like buying shares in a business: you start with an initial investment and can increase your stake over time. However, you can’t own shares in multiple homes like you can with multiple businesses.
Shared Ownership terms and conditions apply to all homes for sale under the scheme. 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 check, we’ll 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.
Still have questions?
The video below picks out some of the questions but our FAQs page has a run down of all the most commonly asked questions about Shared Ownership.
What’s next?
Now that you’ve got a clearer picture of how Shared Ownership works, you might want to explore what the buying process looks like step-by-step or brush up on some of the key terms used when buying a home.