Approx. £400 (depending on your mortgage rate)
Lower deposit requirements
When buying a home through Shared Ownership, you only need a deposit on the share of the property you’re purchasing. For example, if you’re buying a 50% share of a property worth £200,000, your deposit would be based on £100,000 (the value of your share), which is far more affordable than saving for a deposit on the full purchase price. Typically, the deposit required for Shared Ownership is around 5-10% of the share you’re buying. For instance:
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Purchase price of home: £200,000
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50% share: £100,000
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Deposit (5%): £5,000
This significantly reduces the amount you need to save compared to buying a property outright.
Affordable monthly payments
In addition to your mortgage payments on the share you own, you’ll also pay rent on the portion of the property you don’t own. The rent is typically set at a competitive rate (often 2.75%) and is generally lower than renting privately. Over time, as you increase your share, your rent will decrease, making it even more affordable.
For example, with a 50% share in the £200,000 property above, your monthly rent might be:
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Mortgage on 50% share
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Rent on remaining 50% share
Approx. £300–£350 (depending on the property’s value and rent rate)
This creates a more affordable alternative to paying full rent for a property while still working toward ownership.
Staircasing: Increasing your ownership over time
One of the key advantages of Shared Ownership is the ability to gradually increase your stake in the property as your financial situation improves. This is called “staircasing.”
As you buy more shares, your rent reduces, and your equity in the property grows. For example, if you eventually increase your ownership to 75%, you’ll own a larger portion of the home and only pay rent on the remaining 25%. This flexibility means you can grow your home equity as you can afford to, making homeownership a gradual and affordable process.
Other costs to consider
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Annual service charge
This will include building insurance, an admin fee and a management fee (a contribution towards the maintenance of the communal areas of your estate).
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Solicitors fees
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Stamp duty land tax
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Moving costs
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Decoration & DIY
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Contents insurance
