Can you negotiate on a Shared Ownership home?
When you speak to anyone who’s bought a home through the traditional route, they’ll often mention how they negotiated on the asking price or struck a deal on other aspects of the sale.
But when you’re buying through Shared Ownership, the process looks a little different – and so do your options. The short answer is: yes, some things are open to negotiation, but others are fixed by government policy rather than by the seller or housing developer.
In this guide, we’re unpacking exactly what’s on the table, what the limitations are and why – so you can approach the buying process with clarity and confidence.
What you could potentially negotiate: Shared Ownership new-build home
Fixtures and finishes
If you’re buying a new-build Shared Ownership home off-plan (while it’s still under construction), you may be able to choose certain design specifications from a set selection. This could include flooring, kitchen units or tiling, depending on the stage of build and the developer’s offering.
Extras and incentives
Some developers offer incentives such as cashback on completion. While these aren’t guaranteed, it’s worth asking whether any offers are available or if there’s any flexibility on extras.
If you’re unsure whether a particular aspect of a Shared Ownership home is open for negotiation, contact the housing provider directly or ask at the viewing.
What you could potentially negotiate: Shared Ownership resale home
Share size
If you buy a Shared Ownership resale home, the minimum share you can purchase is the share the seller owns. However, if you can afford a larger share, you can purchase more equity in the home from the outset, reducing your monthly rent on the unsold share.
Included items
With a resale, there may be room to negotiate on what’s included in the sale. Some fixtures or white goods, like integrated kitchen appliances, will be included as standard, but others may not be. It’s always worth asking whether the seller is open to leaving certain fittings or furniture as part of the deal.
What you can’t negotiate on a Shared Ownership home
Property price and share value
One of the most common questions buyers ask is, ‘Can you negotiate the Shared Ownership price?’ Unlike a traditional sale, the price of a Shared Ownership home is set in stone.
Shared Ownership homes are purpose-built for the scheme; housing associations receive government subsidies to provide them and, as a result, must adhere to strict rules and regulations. One of these rules is that the property must be independently valued by a Royal Institute of Chartered Surveyors (RICS) registered valuer, and the sale price is based on their valuation. This means the price isn’t something you can negotiate down.
Rent on the unsold share
Rent on the unsold share is capped at a maximum of 3% of the housing association’s share value, though most charge 2.75%. The amount is reviewed annually, with any increases capped and linked to inflation. The terms relating to this will be detailed in your lease.
Service charge
Shared Ownership homes are sold on a leasehold basis, with service charges governed by terms set out in the lease. These charges fund the maintenance and upkeep of communal areas in developments, so they can fluctuate year on year depending on actual costs. For this reason, they’re not something you can negotiate.
Staircasing rules
Staircasing, the process of buying additional shares in your home over time, is directed by government policy. Changes to the current Shared Ownership model in 2021 introduced standardised staircasing rules, so these terms aren’t open to negotiation either.
How to approach negotiations effectively
During the conveyancing process, your solicitor will be your key point of contact. They can advise on what’s negotiable, help you understand the lease terms and raise queries on your behalf.
It’s important to appoint a solicitor with expertise and experience in Shared Ownership, as they know how the scheme works and can advise you at each stage. Explore Share to Buy’s solicitor and conveyancer panel to find a specialist.
If anything is agreed through negotiation – for example, items to be included in the sale – make sure it’s confirmed in writing before exchanging contracts, as this is when the sale becomes legally binding. At this stage, you’re committed to the purchase and obliged to transfer your funds.
Start your search with Share to Buy
Now you know what’s on and off the table for negotiation with Shared Ownership, you can take the next step. Whether you’re browsing new-build developments or resale opportunities, you can find thousands of Shared Ownership homes on Share to Buy.
Use our property portal to search for homes in your area and create an account to save your preferences, register for alerts and enquire about properties you’re interested in.
