Shared Ownership Calculator
Calculate the true monthly cost of shared ownership — mortgage repayments, rent on the housing association's share, and service charges. Compare with buying the property outright.
How shared ownership works
Shared ownership lets you buy a share of a property (usually 25–75%) and pay rent on the remainder to a housing association. You take out a mortgage on your share and pay a deposit based on that share value — not the full property price. This makes the deposit and mortgage much smaller than buying outright.
The trade-off is that you pay rent on the portion you don't own, typically 2.75% of its value per year. This rent usually increases annually by RPI + 0.5%, meaning costs rise over time. You can buy more of the property over time through “staircasing” — purchasing additional shares until you own 100%.
Shared ownership properties are almost always leasehold, which means service charges apply. Check the service charge level carefully — high charges can significantly increase your total monthly outgoings. Also check for any restrictions on subletting, pets, or alterations in the lease.
Frequently asked questions
- Who is eligible for shared ownership?
- You must be a first-time buyer (or a previous homeowner who can't afford to buy now), with a household income under £80,000 (£90,000 in London). You must not already own another property. Existing shared owners looking to move are also eligible.
- What is staircasing?
- Staircasing is buying additional shares of the property from the housing association. You can typically staircase in increments of 10% or more. Each staircasing transaction requires a valuation and legal fees. Once you own 100%, you stop paying rent on the unowned share.
- Can I sell a shared ownership property?
- Yes, but the housing association usually has first refusal — they have a period (typically 8 weeks) to find a buyer from their waiting list. If they can't find one, you can sell on the open market. If you own 100%, you can sell freely without restriction.
- Does the rent on the unowned share go up?
- Yes — rent typically increases by RPI (Retail Price Index) + 0.5% per year, as set out in the lease. In high-inflation years, this can mean significant increases. Some newer shared ownership leases use CPI + 1% instead. Check the lease terms carefully.
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