About Shared Ownership

What is shared ownership?

Shared ownership is a government funded scheme designed as a stepping stone to home ownership for people who otherwise could not afford to buy a home on the open market. Buying your home through Shared Ownership means that you don’t need to buy the whole home straightaway, you would buy a part share and you can then purchase further shares when you can afford to. You might have also heard of Part Buy Part Rent or NewBuild Homebuy, however these are simply other terms for Shared Ownership.

Most people start off by buying a share of between 30% and 75% of the total value of their home and purchase more shares when they are able to (This is called staircasing). The remainder is owned by the housing association (acting as landlord), and you’ll pay a subsidised rent on this share. This means your deposit and mortgage will be less than you’d need to buy the whole home. When you buy more shares and increase your ownership the rent you pay will be reduced.

Shared ownership is not solely designed for first time buyers but there is a criteria that must be met.

As a homeowner you’ll be responsible for all the costs of buying and running your home. These costs can change from year to year and you will need to take into account any unexpected costs. As part of the purchase process, we’ll help you understand these costs and draw up a rough household budget of income and outgoings.

Because of inflation, the rent you pay on our share of your home will need to rise every year, unless you buy additional shares in your home. We can’t predict how much inflation there will be in the future, so we use the government’s RPI (Retail Price Index) measure and set our rent increase at RPI +0.5% every year. So if RPI is 3%, your rent will increase by 3.5%. Service charges change in line with the cost of services delivered, they are likely to increase year on year.

If you ever want to move, you can sell your share of the property with the help of our dedicated resales team. They will take care of marketing and advertising your property, right the way through to finding a purchaser. If you have already purchased the full share of your property and own 100%, you can sell your property on the open market.

Shared Ownership success!

Bunmi Odubanjo successfully climbed from 50% to 100% ownership of her home at The Serpentine. Watch her video here to see how she has become a shared ownership success!

We have a series of short videos that you can watch on this website which we hope will present the information in a friendly but informative way to help you along your journey into home ownership and beyond.