Finance glossary
Shared Ownership
In simple terms
Shared ownership lets you buy a share of a home — often 25% to 75% — and pay rent on the rest to a housing association. Over time you can usually buy more shares, known as “staircasing”.
On this page
What does shared ownership mean?
Shared ownership is a government-backed scheme that helps people who cannot afford to buy a home outright. You buy a share of a property — typically between 10% and 75% — with a mortgage and deposit, and pay a subsidised rent on the remaining share to a landlord, usually a housing association.
The homes are almost always leasehold, and you are a leaseholder for the whole property even though you only own a share of it.
How shared ownership works
You need a mortgage and deposit only for the share you are buying, so the upfront costs are lower than buying outright. You then pay rent on the landlord’s share, plus a service charge if it is a flat.
You can usually buy further shares over time — “staircasing” — often up to 100% ownership, at which point you may stop paying rent. Each staircasing step is based on the property’s value at that time, so it costs more if prices have risen.
How could this affect me?
Shared ownership can get you onto the property ladder with a smaller deposit and mortgage than buying outright. But you pay both a mortgage and rent, plus service charges, so the monthly cost can still be substantial.
Because these homes are leasehold, the usual leasehold considerations apply — lease length, service charges and rules on selling. Selling can also be more involved, as the landlord often has the first chance to find a buyer.
Example
Buying a 40% share of a £250,000 home under shared ownership:
| Full property value | £250,000 |
|---|---|
| Share purchased (40%) | £100,000 |
| Deposit at 10% of the share | £10,000 |
| Mortgage on the share | £90,000 |
| Landlord’s share (60%) | £150,000 |
| Rent | Payable on the £150,000 share |
Figures are illustrative. You also pay a service charge where applicable, and rent is charged on the share you do not own.
Things to watch out for
- You pay a mortgage and rent (and often a service charge), so the total monthly cost can be high.
- Staircasing to buy more shares is priced at the current value, so it costs more if prices have risen.
- These homes are leasehold, and selling can be slower because the landlord often finds the buyer first.
Know your rights
- Shared ownership is a government-backed scheme in England, with model leases that set out staircasing and other rights.
- As a leaseholder you have the usual leasehold protections, including the right to challenge unreasonable service charges.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- GOV.UK, Shared ownership homes — buying, improving and selling (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Shared ownership schemes explained (opens in a new tab). Accessed 22 Aug 2026.