Jargon Busting: Shared Ownership

Shared Ownership explained in 30 seconds

What do I need to know about the part-buy part-rent scheme?

As part of our Jargon Busting in 30 seconds or less mini-series, we’ve taken a look at Shared Ownership and what the scheme actually involves.

What is Shared Ownership?

Shared Ownership, also known as part-buy part-rent, allows buyers to purchase a share of a leasehold home, paying a mortgage on the share they own and rent on the remainder to a housing association. The scheme is great for those who are looking to buy but can’t quite afford to purchase a home on the open market.

With Shared Ownership, the purchaser only needs to get a mortgage for the share they own (not the full amount of the property) meaning that the amount of money required for a deposit is usually much lower compared to purchasing outright.

How is Shared Ownership changing?

The government previously announced their Affordable Homes Programme – a new investment which will see a £12 billion boost into the housing sector, providing up to 180,000 new homes across the country.

As part of this, a new model for the part-buy part-rent scheme has been introduced on new build Shared Ownership properties delivered through the Affordable Homes Programme for five years from April 2021.

This new model means the following for buyers purchasing a home through Shared Ownership:

  • The minimum initial share buyers are able to purchase will be lowered to 10%, compared to the current 25%.
  • The introduction of a 10-year repairs and maintenance warranty.
  • The introduction of longer leases on new build homes.
  • Shared owners will be able to buy additional shares (also known as ‘staircasing’) in 1% increments, compared to the current 10%.
  • Shorter nomination periods for shared owners who are looking to sell their home.

If you are interested in a specific new build property or development, we would recommend discussing your options with the relevant housing provider as the new model is still in its early stages. You can also visit the government website to find out more about the new Shared Ownership model and register with Share to Buy to keep up to date with the latest announcements.

Some homes available with a minimum 10% share are already listed on Share to Buy, so head to our property portal to start your search!

Where can I learn more about Shared Ownership?

As a specialist property portal and independent, educational resource for first time buyers, Share to Buy aims to help potential purchasers access all the information they need about alternative housing options such as Shared Ownership.

For more information on the part-buy part-rent scheme, check out our other articles below:

Share to Buy is a one stop shop for affordable homes. On our website, you can search for propertiescompare mortgages, and find out all you need to know about alternative home-buying schemes using our FAQs and guides.