The UK government continues to address housing affordability through initiatives like the Affordable Homes Programme (AHP). The latest phase, covering 2021-2026, introduces several updates aimed at making home ownership more accessible.
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What is the Affordable Homes Programme 2021-2026?
The AHP is a key government initiative managed by Homes England. It’s designed to boost affordable housing availability in England. With a budget of about £11.5 billion for 2021 to 2026, this programme aims to support the construction of up to 180,000 new homes, though actual numbers may vary with economic conditions.
One major update in this phase is the introduction of a new shared ownership model which broadens access to home ownership. This guide will explain how this model works and what it means for potential homeowners.
What is Shared Ownership?
Shared ownership lets you buy a share of a home—usually between 10% and 75%—and pay rent on the remaining part. You purchase your share using a mortgage or your own savings. A housing association owns the rest, and you pay them a discounted rent for the bit you don’t own.
Shared ownership has existed for years, but the government updated the scheme with a new model in 2021 to make it more accessible, fairer, and clearer for buyers. The New Shared Ownership Model Guide sets out the updated rules.
The Updates at a Glance
Key changes brought in by the new model include:
- Minimum initial share reduced from 25% to 10%.
- Ability to buy further shares in 1% increments.
- New repair support for the first 10 years.
- Extra protection and flexibility for leaseholders.
- Simpler rules for staircasing (buying more shares).
- Improved clarity in legal documents and consumer guidance.
Who Can Apply?
The scheme is open to:
- First-time buyers, or those who used to own a home but now cannot afford one.
- Households earning £80,000 a year or less outside London, or £90,000 or less in London.
- People who meet any extra eligibility rules set by the housing association or local authority (such as local living or working requirements).
If you fit these rules, you can apply for new-build homes or resale homes under the scheme.
How the Buying Process Works
- Find a Shared Ownership property. Search on local housing association websites and national portals like Share to Buy.
- Check eligibility. Complete an application to confirm you meet the income and status requirements.
- Get financial advice. Work out what share you can comfortably afford, taking mortgage payments, rent, and service charges into account.
- Reserve your home. Pay a reservation fee, which is usually deducted from your purchase costs if you go ahead.
- Apply for a mortgage (if required). Most buyers borrow for their share, but you can use cash.
- Legal work. Your solicitor will check the details and explain the lease.
- Exchange contracts. Once legal work is finished and finance is sorted, you commit to the sale.
- Move in. After completion, you get your keys and start living in your new home.
Lower Minimum Shares
The starting share in the new model is just 10%. Before the changes, buyers had to take at least 25%. This means more people can afford to get started, even if they have a smaller deposit or a lower income.
So, if a property is valued at £200,000, you could buy as little as a £20,000 share, and get a mortgage for this amount. You’d pay rent on the remaining 90%.
More Flexible Staircasing
‘Staircasing’ means increasing your share of the property over time.
Under the old scheme, you had to buy more of your home in blocks of 10% or even more. Now, under the new model, you can buy further shares in 1% increments, at a time that suits you. This makes it easier to grow your ownership gradually, without big jumps or extra costs.
- Each 1% staircasing share is priced using an independent, up-to-date method—usually based on an open market valuation.
- After 15 years, you can still staircase, but valuations may be required as per your lease.
This means you can slowly work your way up to more ownership, potentially leading to full ownership in the long term.
Many people found the costs of solicitors, valuations, and admin charges made staircasing difficult before. The new rules aim to cut out or cap these charges when buying 1% shares, so more of your money goes into your home rather than fees.
Supported Repairs in the First 10 Years
Maintenance used to be a big worry for buyers. If the boiler broke or the roof leaked, shared owners were responsible from day one.
Now, for new homes sold under the scheme, your landlord (usually a housing association) covers the cost of essential repairs for at least 10 years, up to a set annual limit—often £500 per year. If a repair costs £1,000, the first £500 is covered each year. You pay for repairs above this amount, but you can roll over any unused allowance for up to one year.
This only covers essentials—not decoration or appliances, but things like heating, water, and structure. This makes budgeting more manageable in the early years.
How Rent is Set and Reviewed
You only pay rent on the percentage you do not own. The rate is usually set at 2.75% of the unsold share’s value each year. This is reviewed yearly, usually in line with inflation (using an official index). Your lease will state how this is worked out.
Consumer Protections and Your Rights
You are protected under consumer law and the Consumer Code for Home Builders. You must get all costs, terms, and payments explained in writing at each stage. You have rights to complain or appeal if you feel the landlord treats you unfairly or breaches the lease.
Final Thoughts
The New Shared Ownership Model Guide makes it easier and safer for more people to own a share in a home. With smaller share options, 1% staircasing, extra repair help, and clearer information, the scheme is now more flexible and affordable. Whether you’re a first-time buyer or someone looking for a secure step back into home ownership, the model gives you options, increased security, and a clear process to follow. If you think you are eligible, this could be one of the most practical ways to secure a home of your own in England.
