It is for people who cannot afford the deposit and mortgage on a whole home that meets their needs. You can buy more shares later, which is called staircasing, and the rent falls as you do.
Quick facts
- Share
- Usually 25% to 75% (10% on some homes)
- Income limit
- £80,000 (£90,000 in London)
- Deposit
- Usually 5% to 10% of your share
- Reservation fee
- Up to £500
- 55 and over
- Up to 75%, then no rent
Who can buy
You can buy a home through shared ownership if both of the following are true:
- your household income is £80,000 a year or less (£90,000 a year or less in London)
- you cannot afford all of the deposit and mortgage payments for a home that meets your needs
One of the following must also be true:
- you’re a first-time buyer
- you used to own a home but cannot afford to buy one now
- you’re forming a new household - for example, after a relationship breakdown
- you’re an existing shared owner, and you want to move
What you pay
You can take out a mortgage to buy your share or pay for it with savings. You’ll also need to pay a deposit, usually between 5% and 10% of the share you’re buying.
When you find a home you want to buy, you’ll usually need to pay a reservation fee of up to £500 to the landlord.
You pay rent to the landlord on the share you do not own, as well as your mortgage.
Buying more later
You can buy more shares in your home in the future. This is known as ‘staircasing’. If you buy more shares, you’ll pay less rent.
If you are 55 or over, or disabled
If you’re aged 55 or over at the time of buying the home, you can buy up to a 75% share through the Older Persons Shared Ownership (OPSO) scheme. Once you own 75%, you will not pay rent on the rest.
You can apply for a scheme called home ownership for people with a long-term disability (HOLD) if other scheme properties do not meet your needs. For example, if you need a ground floor home.
Common questions
What is the income limit for shared ownership?
£80,000 a year household income, or £90,000 in London.
How much do I have to buy?
Usually between 25% and 75%, and 10% on some homes.
What deposit do I need?
Usually between 5% and 10% of the share you are buying.
Can I buy the rest later?
Yes. Buying more shares is called staircasing, and your rent falls as you do.