🔑 Unlocking Homeownership Through Shared Ownership – Updated 2025

Homeownership can feel increasingly out of reach, with property prices rising and deposit requirements becoming steeper. But for those who are struggling to get on the property ladder, Shared Ownership remains a practical and increasingly flexible solution.

How Shared Ownership Works

Shared Ownership is a government-backed scheme designed to make homeownership more accessible. It allows eligible individuals to purchase a share of a home (now starting from just 10% under the latest reforms) and pay rent on the remaining portion to a housing association.

You’ll typically take out a mortgage for your share and pay a subsidised rent on the remainder. Over time, you can increase your share through staircasing — now even possible in 1% increments for the first 15 years, making the path to full ownership more achievable.

What’s Changed in 2025?

🆕 1. Lower Starting Share

• Under the new Shared Ownership model (2021–2026 Affordable Homes Programme), buyers can now purchase as little as 10% of a property — down from the previous 25%.

🆕 2. Flexible Staircasing Options

• Homeowners can increase ownership in 1% increments, with reduced fees for each step, making it easier to gradually own more of your home.

🆕 3. Longer Leases

• All new Shared Ownership homes under this scheme come with 990-year leases, offering greater security and long-term value.

🆕 4. Landlord Contributions to Repairs

• For the first 10 years of ownership, the housing provider is responsible for covering essential repairs (up to a capped value annually).

🆕 5. Faster Resale Opportunities

• Housing associations now have only 4 weeks to nominate a buyer before you can sell your home on the open market.

🆕 6. Change in Rent Increases

• New leases now follow a CPI + 1% formula for annual rent increases, replacing the older RPI + 0.5% model. This offers greater stability for buyers.

🆕 7. New Financial Assessment Rules

• The Homes England affordability calculator has been withdrawn (July 2024). Mortgage advisors now carry out a bespoke affordability check, working with you to ensure costs are manageable, including a signed budget planner and financial sign-off sheet.

🆕 8. Voluntary Shared Ownership Code (2025)

• A new Shared Ownership Code was introduced in June 2025, setting best practice standards around transparency, service charges, defect handling, lease extensions, and resale processes. While voluntary, many housing associations are already adopting the new guidance to improve the buyer experience.

 

Eligibility Criteria (2025)

To qualify for Shared Ownership, you must:

• Be aged 18 or over
• Have a household income of £80,000 or less (£90,000 in London)
• Be a first-time buyer, or a previous homeowner who can no longer afford to buy
• Not own another property at the time of purchase
• Be unable to buy a suitable home on the open market

Additional eligibility checks will be carried out by a financial advisor as part of your application.

 

Benefits of Shared Ownership

• Lower Deposits: Only pay a deposit on the share you’re buying
• Flexibility to Buy More: Staircasing in 1% steps allows you to move toward full ownership at your own pace
• Affordability: Monthly costs may be lower than renting privately
• Security: With 990-year leases and reduced rent hikes, buyers have more stability

 

Considerations Before You Buy

• You only own part of the property until you staircase to 100%
• Selling a Shared Ownership property may involve giving your housing provider the first opportunity to find a buyer
• Some restrictions apply, such as limits on subletting or making major changes

 

Next Steps

If Shared Ownership sounds like the right fit for you, the next step is to speak with a qualified mortgage advisor. At The Mortgage Society, we guide you through every part of the process — from checking eligibility to moving into your new home.

📞 Contact us today to explore your options and find out how Shared Ownership could help you finally unlock the door to homeownership.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 12.08.2025
The Mortgage Society is a trading name of Just Mortgages Direct Limited, an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.