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Complete Guide to Shared Ownership - How Much Will It Cost?

04 Jun 2019

Complete Guide to Shared Ownership - How Much Will It Cost?
One of the biggest limiting factors that people face when they are trying to get onto the property ladder is saving up enough money for a deposit. If you have other outgoings such as rent, food or travel, then it can be difficult saving enough money for a deposit.

But there is actually a wide range of schemes that mean you don’t have to save up such a large deposit to own a property. One of the most popular schemes that can help you get on the property ladder is shared ownership which is a part buy part rent scheme. But it can be confusing knowing what this entails and whether it is the right decision for you. We have created a complete guide to shared ownership to help you decide whether this is could help you own your own home.

How do shared ownership housing schemes work?

Shared ownership housing schemes involve buying between a quarter to three-quarters of a property and paying rent on the share you don’t own. The rent you will pay is at a reduced rate and the overall cost shouldn’t be much more than a regular mortgage. The scheme will also offer you the option to buy a larger share of the property at a later date when you can afford it. Most properties within the scheme are new builds but there are some older properties available as part of the scheme. This is the ideal option for people who struggle to save up enough for a large deposit in order to own their dream home.

Who is eligible to apply for shared ownership?

This scheme is not open to everyone though and there are some requirements that you will need to meet first. In order to be eligible to apply for the scheme you must meet one of the following criteria;

  • First-time buyers who haven’t owned a property before
  • Previous property owner but can no longer afford one
  • Combined household income of less than £80,000 or £90,000 inside London
  • Currently renting a council or housing association property
  • Military personnel will be given priority over other applicants


If you don’t meet these criteria but are over the age of 55 or disabled, then there are other schemes that can help you own your own home. However, if you do meet the above criteria then you will be able to apply for the shared ownership scheme.

Can I afford a shared ownership scheme?

One of the biggest questions have about shared ownership schemes is whether they will be able to afford it compared to their current renting situation. It can actually be a lot more affordable than you think but it is also confusing knowing exactly how much you will be paying out for. We have broken down the costs of shared ownership below;

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On top of the above payments, you will, of course, need to pay for all of your outgoings such as travel, food and credit agreements but these figures vary between each person. With the average price of rent in London reaching a huge £2000a month, shared ownership might not seem as expensive as you first thought. It is important to make sure you have calculated all of your outgoings before deciding if it is right for you.

Where can I find shared ownership homes?

If you are thinking about shared ownership then you can find the right home for you by searching through This website lists out all of the available properties in your area and features a useful calculator to show you how much deposit you will need to save up to own your desired percentage of the property. There a wide number of new build properties available throughout England that could be perfect for you. The rules are slightly different in Wales, Scotland and Northern Ireland so make sure you check that you are eligible.

How to apply for shared ownership scheme

In order to apply for the shared ownership scheme you should first speak to the housing team in your local area or the area you are planning on moving to. You can find contact details for the housing association online here. The next step is to find out whether you will actually be accepted for a mortgage to pay for your part of the home. You will need a mortgage to cover the percentage of your own, which is the largest number on the Share to Buy website. For example, if your home is worth £400,000, you will need a mortgage of £95,000 for a 25% share and a deposit of £5000. There are plenty of calculators and mortgage comparison tools that can show you how much you might be able to borrow but this is complicated by shared ownership as not all lenders will offer you a mortgage on shared ownership.