The new Shared Ownership model allows eligible buyers to purchase an initial share of as little as 10% in qualifying homes. It also introduced annual 1% staircasing for eligible leases, standard staircasing from 5%, an initial ten-year repair period and longer leases when granted from new.
Not every Shared Ownership property uses the new model. The terms depend on how the home was funded and what is written in its lease. Check the Key Information Documents for the property and ask your solicitor or licensed conveyancer to explain the lease before committing to a purchase.
This guide covers Shared Ownership in England.
What is Shared Ownership?
Shared Ownership allows you to purchase a share in the value of a home and enter into a Shared Ownership lease. You pay rent to the landlord on the share you have not purchased.
You will usually fund your share with a mortgage, savings or a combination of the two. You may also need to pay a deposit based on the value of the share you are purchasing.
For example, if you purchased a 10% share in a £200,000 home:
- your share would cost £20,000
- the landlord would retain the remaining 90% share, valued at £180,000 at that point
- you would pay rent on the landlord’s remaining share
- you could also pay a service charge and other property costs
Shared Ownership is designed for people who cannot afford all the deposit and mortgage payments needed to buy a suitable home outright. The property will normally need to be your main home.
You cannot usually rent out the whole property unless you own 100% or receive permission from the landlord in exceptional circumstances. You may be able to rent out a room while continuing to live in the property, subject to the lease and any other requirements.
Read the government’s Shared Ownership guidance for an overview of the scheme.
Changes introduced by the new Shared Ownership model
The government introduced the new model for qualifying grant-funded Shared Ownership homes delivered through the Affordable Homes Programme 2021 to 2026. Its main features have continued under the Social and Affordable Homes Programme 2026 to 2036.
The principal changes from the previous standard model include:
- a minimum initial share of 10%, compared with 25%
- standard staircasing from 5%, compared with 10%
- an option to purchase one additional 1% share each year for the first 15 years
- an initial repair period that will usually last for ten years
- a minimum lease length of 990 years when granted from new
- a four-week nomination period under the standard new-model lease, compared with eight weeks under the previous standard model and eight or twelve weeks under some older leases
These changes apply to qualifying new-model homes. The terms of the individual property’s lease take precedence.
Does every Shared Ownership home use the new model?
No. Shared Ownership properties can operate under different models and lease terms.
A property funded through an earlier programme may use an older lease. A resale property will generally retain its existing lease rather than automatically receiving all the terms of the new model.
Two Shared Ownership properties in the same area could therefore have different:
- minimum purchase shares
- staircasing options
- lease lengths
- repair arrangements
- rent-review terms
- resale processes
- limits on the maximum share a buyer can purchase
For a qualifying home, the landlord should provide Key Information Documents before you reserve. These documents cover:
- key information about the Shared Ownership home
- a summary of the property’s costs
- key information about Shared Ownership
Read these documents before paying a reservation fee. They should explain the property, its costs and the ownership arrangement.
Who can apply for Shared Ownership?
You may be eligible to purchase a Shared Ownership home if:
- your household income is £80,000 a year or less outside London, or £90,000 a year or less in London
- you cannot afford all the deposit and mortgage payments needed to buy a suitable home outright
At least one of the following must also normally apply:
- you are a first-time buyer
- you previously owned a home but cannot afford to buy one now
- you are forming a new household, such as after a relationship breakdown
- you already have a Shared Ownership home and want to move
- you own a home but cannot afford to buy a new home that meets your needs
If you currently own a property, you must usually have formally accepted an offer for it before purchasing through Shared Ownership. That sale must normally complete before or on the same day as your Shared Ownership purchase.
Some developments have local eligibility or priority requirements. You may need to live or work in the area or have another recognised local connection.
Check the current rules in the government’s Shared Ownership eligibility guidance.
The Shared Ownership purchasing process
Find a suitable property
Look for a property in an area where you want to live and check whether it uses the new Shared Ownership model.
Compare the full expected monthly cost rather than focusing only on the advertised share price. Include the estimated mortgage, rent, service charge and any estate or management charges.
Complete the eligibility and affordability checks
The housing provider will check whether you meet the household income, home ownership and any local requirements.
An affordability assessment will consider the financial information available at the time, including your income, deposit, existing commitments and expected housing costs. It will help identify a suitable share based on your circumstances.
An affordability assessment cannot guarantee that the costs will remain manageable if your income, mortgage payments, rent, service charges or other expenses change.
Review the property documents
The Key Information Documents should explain:
- the full market value of the property
- the percentage and price of the share offered
- the rent on the landlord’s remaining share
- the service charge and other regular charges
- the length and principal terms of the lease
- the available staircasing options
- the maximum share you can purchase
- whether an initial repair period applies
- the process for selling the property
Ask the housing provider about any figure or term you do not understand.
Reserve the property
You may need to pay a reservation fee. Government guidance currently states that this will usually be up to £500, but the amount and refund conditions depend on the provider’s reservation terms.
The fee will usually secure the property for a fixed period and be deducted from the amount due on completion. Reservation fees are often non-refundable if you decide not to proceed, so check the terms before paying.
Arrange your mortgage and legal work
Not every lender offers Shared Ownership mortgages. Deposit requirements, interest rates, borrowing limits, fees and lending decisions depend on the lender, property and applicant.
You will also need a solicitor or licensed conveyancer. Consider using someone with Shared Ownership experience who can explain the lease, costs and restrictions before you exchange contracts.
How does the 10% minimum share work?
Under the new model, the minimum initial share can be as low as 10%. The percentage available to you will depend on the property and the affordability assessment.
Using a property valued at £200,000 as an example:
- a 10% share would cost £20,000
- if a lender accepted a 5% deposit on the share, the illustrative deposit would be £1,000
- the remaining £19,000 could be funded by a mortgage, subject to the lender’s decision
- rent would be payable on the landlord’s remaining 90% share
If the property’s initial annual rent were set at 2.75% of the landlord’s share, the calculation would be:
£180,000 × 2.75% = £4,950 a year
This would be £412.50 a month before service charges and other housing costs.
These figures are illustrative. Mortgage availability, deposit requirements and lending decisions depend on the lender, property and applicant. The property documents will confirm the actual rent and other charges.
Purchasing a smaller share can reduce the deposit and mortgage needed at the outset. It also means paying rent on a larger part of the property.
Costs to consider
The price of your share is only one part of the cost of purchasing and living in a Shared Ownership home.
Depending on the property and your circumstances, your costs may include:
- a mortgage deposit
- mortgage repayments and lender fees
- rent on the landlord’s remaining share
- service charges
- estate charges
- management fees
- a contribution towards buildings insurance
- optional contents insurance
- contributions to a reserve or sinking fund
- solicitor or licensed conveyancer fees
- survey and valuation fees
- Stamp Duty Land Tax, where applicable
- council tax
- utilities
- repairs and maintenance
- moving costs
Service charges commonly cover the maintenance of shared areas. An estate charge may cover communal roads or spaces not included in the service charge. A reserve fund may be used for major future work, such as replacing a roof.
Ask for current cost estimates, a breakdown of what each charge covers and information about planned major work. Charges can change after you move in. Money paid into a reserve fund will not usually be returned if you sell.
Your home and the money you have invested in it may be at risk if you do not keep up with your mortgage, rent or other required payments, or if you break the terms of your lease.
Read the government’s Shared Ownership costs guidance for more information.
Staircasing under the new model
Staircasing is the process of purchasing a larger share in your Shared Ownership home.
When you purchase more shares, the landlord’s remaining percentage reduces. Your rent will normally fall in proportion to the landlord’s remaining share, although service charges and other property costs may not reduce.
Your lease will state which staircasing options are available.
Purchasing shares of 5% or more
Under the new model, the minimum standard staircasing transaction has been reduced from 10% to 5%.
The cost of the additional share is based on the property’s market value at the time. You will normally need a valuation from a surveyor registered with the Royal Institution of Chartered Surveyors.
You may also need to pay:
- a valuation fee
- your own legal fees
- mortgage or borrowing costs
- an administration fee charged by the landlord
Ask the landlord for its current fees before deciding whether to proceed.
Under current government guidance, the purchase should usually complete within three months of the valuation date. A new valuation may be required if it does not complete within that period.
Purchasing an annual 1% share
Qualifying new-model leases may allow you to purchase one additional 1% share each year during the first 15 years of ownership.
This is an annual gradual staircasing option. It is not a general right to purchase shares in any multiple of 1%.
Under this option:
- you can normally purchase one 1% share each year
- you cannot use the option to purchase 2%, 3% or 4% at once
- an unused annual option cannot be carried into a later year
- the landlord cannot charge an administration fee for the 1% purchase
- mortgage, borrowing or other funding costs may still apply
The price is normally based on the original value of the property, adjusted using the House Price Index.
You or the landlord can request a valuation from a surveyor registered with the Royal Institution of Chartered Surveyors instead. The party requesting that valuation must normally pay for it.
Read the government’s staircasing guidance before deciding whether to purchase a larger share.
Can you staircase to 100%?
Most Shared Ownership homes allow the buyer to staircase to 100%, but there are exceptions.
Some homes in designated protected areas may restrict staircasing to 80%. Other properties may allow staircasing beyond 80% but require the home to be sold back to the landlord when the shared owner wants to move. These restrictions can depend on the area, funding arrangements, planning requirements and the property’s lease.
Under Older Persons Shared Ownership, the maximum share is 75%, so you cannot staircase to 100%. Once you have purchased the maximum 75% share, no rent is payable on the remaining 25%.
Check the Key Information Documents and lease to confirm the maximum share and resale arrangements for the individual property.
Reaching 100% does not have the same legal result for every property. Depending on the lease and title, the buyer of a house may acquire the freehold, while a flat will normally remain leasehold.
Your solicitor or licensed conveyancer should confirm the position for the individual property.
What is the initial repair period?
Qualifying new-model leases include an initial repair period that usually lasts for ten years from the start of the first lease.
The period normally applies only while the shared owner has purchased less than 100% of the property. It does not mean that the landlord will pay for every repair.
During the initial repair period, the landlord is generally responsible for certain essential repairs to:
- the outside of the building
- structural walls
- floors
- ceilings
- stairs inside the home
The position can differ between houses and flats. A building warranty or another guarantee may cover some work instead.
Under standard new-model arrangements, the landlord should not use the service charge or reserve fund to pay for external or structural repairs for which it is responsible during the initial repair period. Check the lease and charge breakdown for the individual property.
You may still need to pay the normal service charge for other services.
What does the annual repairs allowance cover?
During the initial repair period, you may be able to claim up to £500 a year for eligible work involving fixtures and fittings that:
- supply water, gas or electricity, such as pipes, sinks and baths
- heat the home, such as a boiler or radiator
The allowance does not normally cover:
- decoration
- furniture
- kitchen cabinets
- household appliances such as ovens or washing machines
- repairs covered by a building warranty or another guarantee
- deliberate damage
- problems caused by failing to complete required servicing or maintenance
You must tell the landlord that the repair is needed. The landlord will decide whether it qualifies and may inspect the property.
You will usually need to arrange the work using a TrustMark-registered tradesperson or another professional approved by the landlord. You will normally pay for the work before claiming the eligible amount back.
If you do not use the full allowance in one year, a maximum of one year’s unused allowance can pass into the following year. You must pay any amount above the available allowance yourself.
The lease and the landlord’s repair policy will confirm the process and conditions that apply.
What happens when you purchase a resale?
Purchasing a resale does not normally restart the ten-year initial repair period.
If the existing lease includes an initial repair period, the new shared owner may receive only the time left on it. Any remaining repair allowance may transfer to the new shared owner, subject to the lease and the share purchased. The allowance will not normally apply if the buyer purchases 100%.
The remainder of any building warranty may also transfer with the property. Check the warranty documents to confirm the remaining term and cover.
Read the government’s Shared Ownership repairs and home improvements guidance.
How is Shared Ownership rent calculated?
You pay rent on the landlord’s remaining share.
For a new-build Shared Ownership home, the initial annual rent can be up to 3% of the value of the landlord’s share. Many landlords charge 2.75%, but the property documents will confirm the actual rate.
For a resale property, the rent payable under the existing lease will usually continue at the level paid by the previous shared owner, subject to the lease’s annual rent-review provisions. The amount may also change if you purchase a different share from the one held by the seller.
Rent is usually reviewed once a year. The formula and review date are set out in the lease:
- for leases entered into before 12 October 2023, the permitted increase will normally be based on the Retail Prices Index plus 0.5%
- for leases entered into on or after 12 October 2023, the formula may use either the Retail Prices Index plus up to 0.5% or the Consumer Prices Index plus 1%
The individual lease controls how the rent is reviewed. Check its rent-review clause rather than relying only on the general examples above.
Rent may rise following a review and will not necessarily fall when inflation is negative.
Purchasing more shares will normally reduce the rent because the landlord retains a smaller percentage of the property.
Read the government’s Shared Ownership rent guidance for further information.
Selling a new-model Shared Ownership home
You must usually tell the landlord when you want to sell.
Under the standard new-model lease, the landlord will generally have four weeks in which to nominate a buyer. Previous standard-model leases commonly use eight weeks, while some older leases may use eight or twelve weeks.
Check the individual lease for the nomination period that applies to the property.
If the landlord does not nominate a buyer during that period, you may be able to market the property on the open market. The lease will explain the marketing process and any restrictions.
A valuation will normally be required to establish the current market value before the property is sold. You may need to pay valuation, legal, administration and marketing costs.
What to check before reserving a Shared Ownership home
Before paying a reservation fee, make sure you have received and reviewed:
- the Key Information Documents
- the full market value of the property
- the percentage and price of the share offered
- the deposit requirement
- the initial rent and rent-review formula
- the estimated service charge
- details of estate, management and reserve-fund charges
- information about buildings insurance
- the length remaining on the lease
- the available staircasing options
- the maximum share you can purchase
- the start and end dates of any initial repair period
- the repairs allowance and claim process
- the resale and nomination arrangements
- information about planned major work
- the Energy Performance Certificate
- details of the building warranty for a new-build home
Your solicitor or licensed conveyancer should explain anything in the lease that could affect your costs, use of the property, ability to purchase further shares or a future sale.
Is the new Shared Ownership model right for you?
The new model offers terms that are not found in many older Shared Ownership leases. These may include a 10% minimum initial share, standard staircasing from 5%, the annual 1% option, a ten-year initial repair period and a longer lease.
A lower starting share can reduce the mortgage and deposit needed at the outset. It also leaves a larger share on which rent is payable.
Compare the total expected monthly cost with your income and existing commitments. Allow for possible changes to your mortgage payment, rent, service charge and repair costs.
Read the Key Information Documents, review the lease and consider speaking to a qualified mortgage adviser and a solicitor or licensed conveyancer with Shared Ownership experience before making a decision.
Find a Shared Ownership home
If Shared Ownership may suit your circumstances, explore available Guinness Homes developments and check the tenure, costs and eligibility requirements for each property.
View Shared Ownership developments
This article provides general information about Shared Ownership in England and reflects guidance available when it was last reviewed. It is not a substitute for the individual property’s Key Information Documents or lease and does not provide legal, financial, mortgage or tax advice. Eligibility requirements, costs, lease terms and protections can differ between properties and may change. Before making a decision, check the current property documents and consider advice from a qualified mortgage adviser, solicitor or licensed conveyancer, and tax adviser where relevant.
Last reviewed: September 2026
