Shared Ownership is a housing scheme in the UK aimed at assisting first-time buyers, or those who do not currently own a home, to get onto the property ladder. Participants purchase a portion of the property, usually between 25% and 75%, and pay rent on the remaining share to a housing association. This approach significantly reduces the upfront costs of buying a home, making it more accessible.
The scheme is especially beneficial for individuals and families who find the full purchase price of a home unaffordable but can manage smaller mortgage payments and a rent on a portion of the property. Buyers have the option to increase their ownership over time through a process known as staircasing, where they can purchase additional shares in their home until they own it outright. Each share purchase is based on the current market value of the property, which can change over time.
Shared Ownership properties are usually leasehold, and buyers must pay service charges for the maintenance of common areas and the building. Eligibility for the scheme typically depends on your income, employment status, and whether you're a first-time buyer or a previous homeowner who can't afford to buy now. The specific criteria can vary based on the local housing association's policies and the rules of the scheme.