Shared Ownership (Part Buy Part Rent)
What is Shared Ownership?
Shared ownership is an affordable home ownership scheme which involves part owning, part renting a property. It is designed for people who can’t afford to buy a home outright on the open market. It is available through housing associations and new build and existing shared ownership properties, known as resales, are available through shared ownership. It is the most established affordable home ownership scheme, and is available throughout England.
The most established affordable housing scheme is shared ownership, whereby you part buy part rent property from a housing association. The scheme is sometimes referred to as ‘part own part rent’ because you literally own part of the property and pay a rent on the remainder that is subsidised so as to be affordable.
How does Shared Ownership work?
· Buy a share in a property, usually ranging from 25% to 75%
· Pay below-market rent on the remaining share owned by a housing association
Although your maximum share can sometimes be capped, with most shared ownership homes you can 'staircase' to full ownership in the future (i.e. buy more shares in the property up to 100% ownership). There is more information about staircasing here.
The rent you pay can be up to 3% of the association's share of the property value. Shared ownership properties are leasehold properties, meaning you will own the lease on them for a fixed period of time, typically 99 years.
You also have to pay a service charge for the property, which is usually charged on a monthly basis.
What properties are available for part rent part buy schemes?
You cannot purchase any property on the open market. Shared ownership housing is generally restricted to properties owned by a housing associations.
Most part buy part rent properties are new build and the only national scheme for part owned houses on the second hand market is where an existing owner sells their share on to a new owner in a process known as a resale.
You can search for housing association shared ownership properties, including part buy part rent flats and houses, using our shared ownership property search tool.
Selling your shared ownership home
You can sell your shared ownership property at any time but the housing association has the right to find a buyer for your home, if it still owns a share of it and to buy it back first.
Shared Ownership mortgages
The mortgage team at Share to Buy ltd has significant experience in arranging mortgages for shared ownership schemes, and has access to the main part buy part rent mortgage lenders. Find out what you can borrow and the potential cost of a shared ownership mortgage using our shared ownership mortgage calculator tool which enables you to search for shared ownership mortgages from across the market.
Rent to buy
Rent to buy properties make another important affordable housing option. With the rent to buy scheme you can rent a property at a below-market rate, enabling you to save towards a deposit so that you can eventually purchase that property. Thus, rent to buy schemes offer a way to part own houses and flats after a period of initially renting them – hence, rent to buy housing is sometimes called ‘try before you buy’. You can find both rent to buy flats and rent to buy houses on the Share to Buy property website.
20th March 2017
Saturday 18th March saw over 4,400 attendees to London’s No.1 event for first time buyers, the London Home Show Spring 2017.
With 47 exhibitors under one roof, the event offered attendees the opportunity to speak to the biggest names in the first time buyer sector, including housing providers, financial advisors, legal experts and more. Attendees could register their interest in the properties and services on offer from exhibitors, and thousands of leads were generated over the course of the day.
15th March 2017
This guest blog comes from Southern Home Ownership, sponsors of the London Home Show Spring 2017.
Southern Home Ownership is part of Southern Housing Group; one of southern England's largest housing associations, with a growing portfolio of over 26,000 homes across London and the South East. We’ve been helping buyers onto the property ladder for over 30 years, making home ownership a reality for more than 4000 households.
15th March 2017
Our latest guest blog comes from L&Q, sponsors of the London Home Show Spring 2017. The blog, by L&Q Regional Sales Director, Lucy Chitty, looks at L&Q's new Shared Ownership awareness campaign, PricedIn Living.
9th March 2017
Today's guest blog is from Tim Seward Head of Property Sales at London Home Show Spring 2017 at Latimer:
First-time buyers struggling to raise enough cash for a deposit to buy a home of their own are increasingly turning to alternative ways of achieving the dream of home ownership.
Although shared ownership is by no means a new initiative – in fact it has been around since the early 1980s - it’s becoming more mainstream and an accepted part of the UK housing market. A recent report showed that the number of shared ownership purchases has risen by more than 130 per cent in six years.
In order to find out if you're eligible to apply for a property please check the eligibility criteria found on the property page itself, and for more information please contact the housing provider who is advertising the property. If you haven't done so already, you must register for a user account and be logged in to have access to housing provider phone numbers.