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Shared Ownership Explained

Updated: Apr 8

The Shared Ownership scheme is a part-government-funded program designed to help individuals who are struggling to afford the full purchase price of a home access the property ladder.

It allows eligible buyers to purchase a share of a property typically between 25% and 75% — and pay rent on the remaining share.

The purchaser is responsible for making mortgage payments on the portion of the property they own while paying subsidised rent to a housing association for the remaining share. As the mortgage taken out is specifically for the share of the property owned (25%-75%) the deposit required is typically less than a traditional mortgage.

Street of houses

Why is Shared Ownership a good option?

There are various reasons as to why Shared Ownership presents itself as a good option for those eager to get on the property ladder. For example:

Lower Deposit

Shared Ownership opens property purchasing opportunities for those struggling to save a lump sum to serve as a traditional deposit. The scheme allows home buyers to kick start their home buying journey with a lower deposit payment.

Reduced Monthly Payments

As Shared Ownership users typically purchase a 25% share of the property, monthly repayments can become more affordable leaving room to manage budgets and alleviate financial stress.


The Shared Ownership scheme allows home buyers to gradually increase their share of the property over time via a process called ‘Staircasing’. This enables home buyers the time and flexibility to eventually build equity into the property and eventually own the property outright.

Who can apply for Shared Ownership?

Eligibility will vary depending on specific criteria set out by Housing Associations and

Lenders. However, generally:

·        You must be at least 18 years of age.

·        Your annual household income must be less than £80,000, (£90,000 in London).

·        You must be a first-time-buyer or do not currently own a home.

·        The property you are purchasing must be eligible for the Shared Ownership scheme.

·        You must have the legal right to live in the UK.

·        The property you're purchasing must be your main residence.

In conclusion, the Shared Ownership scheme can open property purchasing opportunities to those struggling to save for a deposit or those with a lower monthly income.

Before committing to a Shared Ownership arrangement, it's vital to weigh up the pros and cons, consider your long-term financial position, and be aware of any additional fees or restrictions associated with the scheme.

Consulting with a financial advisor or a mortgage expert can provide valuable insight into whether this home-buying route is right for you.


Approved by The Openwork Partnership on 14/03/2024

Providence Global Finance is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.​


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