Shared ownership: The pros and cons for first-time buyers

What is shared ownership? Shared ownership allows you to buy a share of a property usually between 25% and 75% while paying rent on the remaining portion to a housing association.

No. 12800 from our magazine|2 min read| Published in Magazine on 19 September 2025 by our Marketing Team

Over time, you can “staircase,” or gradually buy more shares, until you eventually own 100% of your home. It’s designed to help first-time buyers get onto the property ladder with a smaller deposit.

The benefits of shared ownership

Lower upfront costs: You only need a mortgage for your share, which usually requires a smaller deposit than buying outright.

Get on the property ladder sooner: For many first-time buyers, shared ownership is a way to move into homeownership sooner than traditional routes.

Potential to increase ownership over time: Staircasing lets you gradually increase your share of the property as your finances allow.

Support from housing associations: Many schemes offer guidance and support, making the process smoother for first-time buyers.

The drawbacks of shared ownership

Rent on the unsold share: Even though you own part of the property, you’ll pay rent on the remaining share, which can increase over time.

Resale restrictions: Selling a shared ownership property can be more complicated, as you often need approval from the housing association and may have restrictions on buyers.

Service charges and maintenance costs: You’re responsible for property upkeep and may have additional service charges, which can affect affordability.

Limited flexibility in some cases: Staircasing may be slow or restricted, depending on the housing association’s rules.

Is shared ownership right for you?

Shared ownership works well if you:

Are you finding it difficult to accumulate a substantial deposit for a traditional mortgage?

Want to enter the property market sooner rather than later.

Are comfortable with paying rent on part of the property and potential resale limitations?

It may be less suitable if you prefer full ownership upfront, need complete flexibility for future moves, or want to avoid paying rent entirely.

Tips for first-time buyers considering shared ownership

Check eligibility criteria carefully, as schemes may be income restricted.
Compare different housing associations and developments to find the best deal.
Understand all costs, including rent, service charges, and staircasing fees.
Speak with a mortgage adviser experienced in shared ownership to explore your options.