Shared Ownership can reduce the amount you initially need to fund when buying a home. Your deposit and mortgage are generally based on the share you purchase rather than the property’s full market value. You then pay rent to the housing provider on the remaining share and may also pay service charges and other property-related costs.
The potential benefits include:
- a deposit based on the share you purchase
- a smaller initial mortgage than purchasing the same property outright
- access to locations that could otherwise be beyond your budget
- the option to purchase further shares where the lease allows
- a choice of new-build and resale homes
- more freedom to personalise your home than you may have when renting
Shared Ownership is not automatically the right choice for everyone. Its suitability will depend on the property, the lease, your financial circumstances and the complete cost of buying and owning the home.
How does Shared Ownership work?
Shared Ownership allows you to purchase an initial percentage share under a Shared Ownership lease. You pay rent to the housing provider on the share you have not purchased.
Buyers commonly use a mortgage, savings or a combination of the two to fund their share. A mortgage deposit may also be required and will usually be based on the value of the share being purchased.
The initial share available depends on the property, its lease and the Shared Ownership model. An affordability assessment will help establish a suitable starting share based on your financial circumstances.
The share you purchase affects the amount you need to fund and the rent payable on the housing provider’s remaining share. You may also need to pay a service charge, estate charge or other property-related costs.
Your Shared Ownership lease is a legal agreement. It explains your rights and responsibilities, the housing provider’s responsibilities and the rules that apply to the property.
Where applicable, you should receive relevant Key Information Documents before reserving a home. Depending on the property and Shared Ownership model, these may include details of:
- the share being offered
- the rent on the housing provider’s remaining share
- service charges and other property costs
- the lease arrangements
- staircasing and selling the property
- repair and maintenance responsibilities
Read these documents carefully and ask about anything you do not understand. Your solicitor or licensed conveyancer should explain the lease before you exchange contracts.
A deposit based on the share you purchase
A key benefit of Shared Ownership is that the mortgage deposit is usually based on the value of the share you are purchasing rather than the property’s full market value.
For example, for a property with a full market value of £200,000:
- a 25% share would be worth £50,000
- a 10% deposit on that share would be £5,000
- a mortgage could cover the remaining cost of the share, subject to the lender’s requirements
This example is illustrative. Your deposit will depend on the property, the share being purchased, the mortgage lender’s requirements and your financial circumstances. Mortgage availability is not guaranteed.
You should also allow for other potential upfront costs, including:
- solicitor or licensed conveyancer fees
- mortgage arrangement or broker fees
- valuation and survey costs
- moving expenses
- any property tax that applies to the purchase
Because the deposit is generally calculated using the purchased share, the amount required may be lower than a deposit calculated using the full market value of the same property. Other upfront and ongoing costs will still apply.
Read our guide to deposits for Shared Ownership for further examples.
A smaller initial mortgage
The initial mortgage for a Shared Ownership home is generally based on the share being purchased rather than the property’s full market value.
If you purchased a 25% share in a £200,000 property, your share would cost £50,000. After paying your deposit, the mortgage would usually cover the remaining cost of that share, subject to the lender’s requirements and your application being accepted.
This normally means the initial mortgage is smaller than the mortgage that would be required to purchase the same property outright.
A smaller mortgage does not necessarily mean lower overall housing costs. Whether the home is affordable will depend on your income, spending, existing borrowing, savings, chosen share, mortgage terms, rent and other property costs.
You will pay rent on the housing provider’s remaining share. Depending on the property, you may also need to pay service charges, estate charges and other regular costs.
Compare the mortgage, rent, service charge and other housing costs together rather than looking at the mortgage payment alone. Mortgage rates, rent and property charges can change over time.
If you are comparing different routes to buying, our guide to Shared Ownership versus buying outright explains some of the main differences.
The option to purchase further shares
Many Shared Ownership leases allow you to purchase further shares after you have moved in. This process is known as staircasing.
If you purchase another share, the rent on the housing provider’s remaining share will usually reduce in line with the lease. The price of additional shares is generally based on the property’s market value at the time you staircase rather than its value when you purchased your initial share.
Your lease will confirm:
- whether you can staircase
- the minimum additional share you can purchase
- any limit on the total share you can hold
- the valuation and application process
Some leases may allow staircasing to 100%, while restrictions can apply to certain properties and locations. You should not assume that every Shared Ownership property can be staircased to full ownership.
You will not usually be required to staircase. Subject to your lease and mortgage, you may be able to continue with your original share without purchasing more.
Staircasing can involve:
- property valuation fees
- legal fees
- mortgage or remortgage costs
- administration charges
- property tax where applicable
Changes in the property’s market value will also affect the price of further shares.
Our Shared Ownership staircasing guide explains the process in more detail.
Access to areas that could otherwise be beyond your budget
Purchasing a share rather than the whole property may give you a wider choice of locations within your budget.
This could help you remain close to work, family, schools, transport connections and the community you already know. For some buyers, location may be as important as the size or style of the property.
George and Laura described how affordability and location influenced their decision to purchase a Shared Ownership home at Signal Park in Tolworth:
“We chose a Shared Ownership property as it was the most affordable way to get on the property ladder. It has allowed us to own a home in the right location, all whilst being affordable and manageable.” George and Laura, Signal Park, Tolworth
This was their individual experience. The affordability of a Shared Ownership home will depend on your income, savings, mortgage, chosen share and ongoing costs. Another buyer may have a different experience.
Availability and eligibility requirements also differ between properties. Some developments may have local connection, income, affordability or allocation criteria. Check the requirements for the individual home before applying.
A choice of new-build and resale homes
Shared Ownership properties can include new-build and resale houses and apartments. The types of homes available will vary by location and over time.
Depending on the individual home and its specification, a new-build property may include:
- a newly fitted kitchen and bathroom
- appliances included within the property specification
- heating, insulation and glazing appropriate to the property’s design and applicable building requirements
- an applicable new-home warranty
- less immediate decorative work after moving in
These are possible features of an individual property rather than benefits guaranteed by Shared Ownership. Check the development and property information carefully so you understand what is included.
A resale Shared Ownership home has previously been occupied under the scheme. Resales may provide an opportunity to purchase a share in an established neighbourhood or a development where new homes are no longer available.
When considering a resale property, check:
- the percentage share being sold
- the condition of the property
- the remaining lease length
- the rent and service charge
- any planned work or expected charges
- whether any building warranty remains
For any property you are considering, check its Energy Performance Certificate to understand its assessed energy performance.
More freedom to personalise your home
Shared Ownership can give you more freedom to personalise a property than you may have when renting, although the lease will still contain rules and restrictions.
Routine decoration is generally permitted, so you can usually furnish and decorate the property to suit your preferences. Structural alterations and certain other changes may require written permission from the housing provider.
Your lease will explain what you can change and when permission is required. Check the lease and obtain any necessary consent before beginning major work.
Your share may change in value
The market value associated with your Shared Ownership share can rise or fall as the value of the property changes.
If the property increases in value, your share may be worth more. If its value falls, your share may be worth less than when you purchased it.
Changes in value can affect:
- how much your share may be worth when you sell
- the cost of purchasing further shares
- the equity that may be available if you remortgage
An increase in value is not guaranteed. The eventual financial outcome will also depend on how long you remain in the property, the balance remaining on your mortgage and the costs involved in buying, owning and selling it.
Costs and responsibilities to consider
Shared Ownership involves more than a mortgage payment. The potential benefits should be considered alongside the full costs and responsibilities of the property.
Depending on the home, your regular costs could include:
- mortgage repayments
- rent on the housing provider’s remaining share
- service or estate charges
- payments towards a reserve or sinking fund
- buildings insurance arrangements
- household bills
Mortgage rates, rent and service charges can change. Consider whether you could continue to afford the property if your regular costs increased.
Shared owners will generally be responsible for repairs and maintenance inside their homes regardless of the share purchased. Different arrangements may apply if an initial repair period is included in the lease. A building warranty may also cover certain work for a limited period.
For an apartment, the housing provider or building owner will usually arrange work to shared, external and structural areas. You may contribute towards these costs through a service charge, reserve fund or another charge set out in the lease.
Your lease should explain:
- which repairs are your responsibility
- how rent and charges are reviewed
- how you can alter or use the property
- the rules for staircasing and selling
- any restrictions relating to subletting or other uses
Stamp Duty Land Tax may apply when you purchase an initial share or further shares in a Shared Ownership property in England. The amount and payment options will depend on the transaction and your circumstances. Ask your solicitor or tax adviser to explain the position before committing to the purchase.
Before proceeding, review the Key Information Documents and compare the complete cost with your other housing options. Ask your solicitor or licensed conveyancer to explain the lease and obtain independent mortgage, financial and tax advice where appropriate.
Important information
Shared Ownership is a long-term financial commitment. Your home and the money you have put into it may be at risk if you do not keep up with your mortgage, rent, service charge or other payments required under the lease. Ask your solicitor or licensed conveyancer to explain the lease and what could happen if payments are missed.
Deciding whether Shared Ownership is right for you
Shared Ownership may be suitable if you can afford the complete ongoing costs but cannot currently purchase an appropriate home outright.
Before applying, consider whether:
- you have enough savings for the deposit and other buying costs
- the mortgage, rent and service charge are affordable together
- you could manage possible increases in your regular costs
- the property is likely to meet your needs for a reasonable period
- you understand the responsibilities and restrictions in the lease
Meeting the general eligibility requirements does not guarantee acceptance for a particular property or mortgage.
Eligibility, allocation and affordability checks will usually form part of the application process. A mortgage lender will carry out its own checks and make a separate decision about whether it is willing to offer a mortgage.
Our guide to applying for a Shared Ownership home explains the usual steps.
Find a Shared Ownership home with Guinness Homes
If Shared Ownership may suit your circumstances, explore the homes currently available from Guinness Homes.
Each development page includes information about the location, available properties and the shares being offered. The sales team can explain the application process and the requirements applying to an individual property. An application or mortgage cannot be guaranteed.
Explore Guinness Homes developments
Important information
This article provides general information about Shared Ownership in England. It is not mortgage, financial, legal or tax advice and does not recommend a particular property, mortgage or course of action.
Eligibility requirements, leases, available shares, costs, charges and property features differ between homes. Figures and examples are illustrative and may change.
Before committing to a purchase, review the Key Information Documents and lease for the individual property and obtain independent mortgage, financial, legal and tax advice where appropriate. Check that any mortgage adviser or firm you use has the relevant permissions on the Financial Services Register.
Your home and the money you have put into it may be at risk if you do not keep up with your mortgage, rent, service charge or other payments required under the lease.
Last reviewed: October 2026
