Buying a home can be expensive, and for many single people the challenge is saving up enough money for a deposit and meeting mortgage lender requirements based on one income. Shared ownership can be an option that makes home ownership more affordable. It allows you to buy a share of a property and pay rent on the rest. Over time, you can buy larger shares, and possibly own the whole property.
This guide explains how shared ownership works, the steps involved in buying as a single person, the costs you can expect, the risks, and how to prepare.
Guinness Homes is proud to provide award-winning Shared Ownership and private sale homes in areas you want to live.
What Shared Ownership Means
Shared ownership is a scheme usually offered through housing associations. You buy a percentage share of a property, often between 25% and 75% of its market value, and pay rent on the remaining share. The rent is paid to the housing association or developer who owns the other share. You get a lease for the property, which is a long-term agreement giving you rights to live there.
The property could be a new build or a resale from another shared ownership owner. You can increase your share later through a process called staircasing. This lets you buy more of the property in stages until you own it fully.
Discover the step-by-step process at our How Shared Ownership Works guide.
Who Can Apply
You need to meet certain criteria to qualify for shared ownership. These vary slightly depending on the housing association, but usually you must:
- Have a household income under a set limit. In most parts of England this limit is £80,000 a year, and £90,000 in London.
- Be a first-time buyer or not currently own a home.
- Have the right to live in the UK.
- Be able to show you can afford the costs involved.
As a single person, your income limit will be based on you alone, not combined with a partner’s. This can work in your favour if your earnings are under the limit.
For eligibility details, see Shared Ownership Eligibility page.
Why Shared Ownership Can Help Single Buyers
Single buyers often face obstacles when applying for a mortgage since affordability checks are based solely on one salary. Shared ownership can overcome this since the purchase price of the share is much lower than buying the whole property outright. The deposit is calculated on the price of the share you buy, so for example a 25% share of a £200,000 property would cost £50,000, and a 5% deposit would be £2,500.
Lower deposits and mortgage amounts make owning a home possible for those who might not qualify for a full purchase on the open market. Renting the remaining share can still be cheaper than paying full market rent.
Check out recent success stories from individuals on Shared Ownership Case Studies
Preparing Your Finances
Before you start, make sure your finances are in good order. Lenders will check your credit history and assess your affordability.
Keep good records of your income and outgoings. Avoid missing bills or payments. Reduce unnecessary spending and aim to save for both the deposit and moving costs.
Work out how much you can afford monthly by adding together:
- Your mortgage repayment estimate.
- Rent on the unowned share.
- Service charges for communal maintenance.
- Utilities and council tax.
It is useful to allow for rising costs over time.
Finding a Shared Ownership Property
Housing associations advertise shared ownership homes on their websites and through property portals. You can register for updates or sign up to local authority affordable housing schemes.
Listings will show the share for sale, the rent on the remaining share, service charges, and information about the home. As a single buyer, think about location, transport links, and proximity to work. You may not have a second income to fall back on, so choose an area where costs and commuting work for you.
Viewing and Deciding
When viewing a property, check the quality of the build, the layout, and ongoing costs. If it is a resale, ask for details about service charge history and any planned works which might raise service charges.
Decide what share size is realistic. A larger share means higher mortgage payments but lower rent. A smaller share means lower purchase costs but you will pay more rent over time. The choice should balance your current budget with future plans.
Applying for a Mortgage
With Shared Ownership, you need a mortgage for just the share you are buying. Not all lenders offer shared ownership mortgages, so approach those who do. Your housing association may have a list of recommended lenders.
The lender will check your income, outgoings, and credit history. As a single person, the focus will be purely on you, so make your application strong by demonstrating stable employment and savings.
Your monthly mortgage payment, combined with rent and service charges, will need to fit within your affordability limits.
Legal Process
Once your mortgage offer is in place, your solicitor will handle the purchase. Buying a shared ownership home involves a leasehold contract. This sets out ownership terms, your rights and duties, and the process for staircasing.
Your solicitor will explain the lease, including any rules on alterations, selling, or sub-letting. The solicitor will also check there are no legal issues with the property. Legal fees vary, but expect to pay £800 to £1,500.
Costs You Need to Budget For
When buying as a single person, you carry all costs without another income to share them, so plan carefully. Typical costs include:
- Deposit based on the share price.
- Mortgage arrangement fee.
- Valuation fee.
- Legal fees.
- First month’s rent and service charge in advance.
- Moving expenses such as removals and set-up costs.
Monthly costs will include mortgage payments, rent on the unowned share, service charges, insurance, utilities, and council tax.
Over time, rent and service charges may rise. Check the lease for rules on rent increases.
Staircasing as a Single Owner
If your circumstances improve, you can buy more shares of your property. This is staircasing. Each step involves paying for the share based on the property’s current market value, not the original price. If values have risen, buying extra shares will cost more.
As a single person, staircasing often depends on whether your income or savings grow. There is no requirement to staircase, so you can remain in your original share for as long as needed.
Selling a Shared Ownership Home
If you want to move, you can sell your share. Your housing association usually has the first right to find a buyer. They may offer it to people on their waiting list.
Selling can take longer than selling on the open market since not everyone qualifies for Shared Ownership. This is worth keeping in mind, especially if you need to move quickly.
Benefits for Single Buyers
There are clear advantages:
- Lower deposit makes buying possible sooner.
- Mortgage is based on a smaller sum.
- Often cheaper monthly costs than renting a similar home.
- Opportunity to increase your share over time.
- Access to new or well-maintained homes.
For single buyers, Shared Ownership can be a practical route into home ownership, especially in expensive areas where buying outright is not realistic.
Planning Ahead
Think about how shared ownership fits your long-term aims. If you expect your income to rise, staircasing could eventually give you full ownership. If you expect to move in a few years, check how selling works.
Keep a savings buffer in case costs rise, and maintain your home well to protect its resale value. Living alone means all repairs and upkeep fall to you, so factor maintenance into your budget.
Buying a Shared Ownership property as a single person can open the door to home ownership sooner and with less financial pressure. By preparing carefully, understanding the scheme, and choosing the right property, you can secure a home that suits both your current situation and your future plans.
