What Is Shared Ownership?

Shared ownership is an initiative for buyers who are unable to afford the property via monthly repayments and the initial deposit. It allows them to purchase a share in the new build or resales property.

The first time buyer pays the mortgage on the share they own and pays rent to a housing association on the remaining share. The buyer only needs a mortgage for the share they are purchasing. The amount of money required for a deposit is usually a lot lower when compared to the amount that would be required when purchasing the home outright.

The buyer has the option to increase their share during their time in the property via a process known as staircasing. In most cases, the resident can staircase to 100%. In this instance, the shared owner will no longer pay any rent, just their mortgage along with any service charges and ground rent.

In this Accent Housing blog, we are going to give you all the information on shared ownership, how to qualify for the scheme, and how to apply for one.

How To Qualify For The Shared Ownership Scheme

There are multiple conversations and questions surrounding shared ownership, including that it is only for first-time buyers or key workers. This isn't true, here are some of the rules:

  • You will need a deposit, usually between 5%-10% of the equity share you are buying.
  • You will not be able to purchase a shared ownership home if you are in a position to afford to buy a similar home outright.
  • It must be your only home. (So you'll either be a first-time buyer or someone who used to own a home but doesn't anymore and can't afford to buy one now).
  • You'll also need to show that you are not currently in rent arrears and that you have a good credit history.
  • Your household earns £80,000 a year or less or £90,000 a year or less in London
  • You’re a British or EU/EEA citizen or have indefinite leave to remain

Is Shared Ownership Better Than Buying?

Dependant on your circumstances will determine whether shared ownership is better than buying.

From the outset shared ownership is cheaper as the deposit you need to put down is only on the proportion of the property that you are buying. So, it’s great for those with low to medium incomes with a smaller deposit.

Another key benefit of Shared Ownership is that it allows you to buy a home in an area you love without having to move out of town. You can find your dream home without having to spend a long time saving up for a huge deposit.

What Home Can I Buy Through Shared Ownership?

Not all homes for sale offer the opportunity for you to claim shared ownership. Here are the homes you can buy:

  • a new-build home
  • an existing home through a shared ownership resale scheme
  • a home that meets your specific needs, if you have a long-term disability - for example, a ground floor flat

Shared ownership homes are offered by housing associations, local councils, and other organisations. They are called ‘providers’ or the landlord.

Does Accent Have Any Shared Ownership Homes For Sale?

All our available homes for sale are now available to view on homemadehomes.com. Homemade is the experienced property sales team within Accent offering both new and resale shared ownership homes. We have Shared Ownership properties across the country, from Surrey to Yorkshire and have helped hundreds of people fulfil their homeownership ambitions.

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