Shared Ownership Myth-Busting - What does the 'Shared' part mean?

Shared Ownership Myth-Busting - What does the

We're back to bust another myth about Shared Ownership that we hear from time to time when talking to you, our customers.

Are you confused by what the 'Shared' part of the name actually means? We're often asked at our Help to Buy shows if you have to live with other people, a bit like a house share.

The answer is no so don't worry, you won't have to face any awkward bathroom queues in the morning as Shared Ownership doesn't involve you living in a property with strangers, or anybody else you don't want to for that matter!

It simply just refers to how the property is owned, not lived in. When you buy a Shared Ownership home you buy a portion of it based on what you can afford. This is your 'share' of the home. The share that you do not buy remains owned by the Housing Association who is selling the home. Because they still own part of the home, you will pay a low cost rent to them for this share. The rent is proportionate to the amount you own, so the more you buy the less rent you pay. As an example, if you bought a 50% share of a property the rent on the other 50% could be £177, whereas if you bought a 25% share of the same property the rent on 75% could be £297. Along with a smaller mortgage and therefore smaller monthly mortgage repayments, monthly costs are often very similar if not cheaper than privately renting.

The scheme can make buying a new home much more affordable as you may only require a 5% deposit for the share you buy. For example, if you bought a 35% share of a property valued at £87,500, a 5% deposit would be just £4,375. The huge benefit of Shared Ownership is that you could make that exciting move into a home of your own without the big deposit you'd need if buying on the open market, and you don't have to share with anyone!

When buying with Shared Ownership you will be expected to maximise your affordability. This means you'll be expected to buy as much of the home as you can afford, which may be more than the minimum share on offer. This way you'll own more of your home and the rent portion will be lower. You can even buy further shares of your home in the future meaning you'll own more of it, this is called staircasing, you can read more about it by clicking the link below.

We hope this has helped clear up another small Shared Ownership myth. We'll be back next time to iron out some more misconceptions but, if you have any other questions, feel free to e-mail us at or call 0800 456 11 88. You can also read our Guide to Shared Ownership by clicking the link below!

More info:   

Call 0800 456 11 88 or Shared Ownership Guide, Staircasing Information