Shared ownership Shared ownership schemes
Most shared ownership schemes help you to buy a new-build property
Shared equity schemes - am I eligible?
There are a range of government shared ownership schemes. The largest is HomeBuy.
All first-time buyers with a household income of less than £60,000 who can’t buy a home on the open market are eligible to apply for HomeBuy schemes but local residents, social tenants and key workers may be given priority.
Although the properties are usually new builds, shared ownership is also available through re-sales where you buy a share of a property from its current owner. Some properties are only available to key workers, such as nurses and teachers.
See the next page of this guide for more answers on what is shared ownership and frequently asked questions, including how to get a mortgage.
Shared equity schemes - where can I apply?
This is an introduction to the government's shared ownership scheme, HomeBuy.
New Build HomeBuy
The government's New Build shared ownership scheme offers new homes as part buy/part rent. There are a variety of percentage shares in a property available from between 25% and 75% with a subsidised rent paid on the remaining percentage. You will need a mortgage to buy your percentage of the property.
You can purchase a larger share in the property at any time up to 100%. This is known as staircasing.
To apply for a HomeBuy shared ownership scheme in England you should apply to your local HomeBuy agent. Visit the HomeBuy portal to find your nearest agent.
This scheme is specifically for social housing tenants who qualify for Right to Buy but can't afford to buy the property outright. To be eligible, you must have been a social tenant for at least five years or two years for tenancies created before 18 January 2005. Your landlord must also be a member of the scheme.
You buy a minimum of 25% of the home you are currently renting - or another property - and the remaining equity is retained by your landlord. On the percentage of the property that you don't own you will pay a subsidised rent.
You can purchase a larger share in the property at any time up to 100%.
Rent to HomeBuy
This scheme lets you rent a newly built or existing home for up to five years to allow you to save for a deposit. You pay no more than 80% of the current market rent. At the end of the 'intermediate rent' period you can buy your home through New Build HomeBuy.
Shared ownership in Scotland, Wales and Northern Ireland
Scotland, Wales and Northern Ireland have their own shared ownership schemes. You can find details about each scheme via their government websites.
As well as shared ownership schemes, there is also HomeBuy Direct and FirstBuy, which give you an equity loan to help you buy a property. For more information on shared equity schemes visit our guide.
Need mortgage advice?
We believe you should seek independent mortgage advice before taking out a mortgage. The Which? Group offers an independent mortgage advice service, Which? Mortgage Advisers, that looks at every mortgage from every available lender. You can also find an independent mortgage adviser using Unbiased.co.uk.
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