Search for Shared Ownership homes in London

What is Shared Ownership and how does it work?

Is Shared Ownership the right housing scheme for you?

Shared Ownership is a scheme that’s recognised and funded by the government, designed to help people buy a home by purchasing a share and paying rent on the rest. It’s available across England and gives middle-income households a more affordable way to become homeowners.

Buyers can start by purchasing a share in a new-build home, or an existing Shared Ownership home that’s being sold, and pay a subsidised rent on the remaining share. The share may be as small as 10 per cent or as large as 75 per cent. Over time, they can buy more shares through an optional process called staircasing, and may eventually own the home outright.

Buyers usually take out a mortgage for the share of the home they’re buying. This means they need a deposit. Because the mortgage and deposit are based on the share of the home they’re buying, rather than its full value, the cost is lower than the cost of buying the home outright.

Shared Ownership homes are offered on long-term leases and can be either houses or flats.

Shared owners who purchase a flat, and, in some cases, a house, will be required to pay a monthly service charge. These monthly fees cover the maintenance of communal areas and building-related expenses, which include building insurance and things like the lifts, lighting, communal aerials, door entry systems, cleaning of common areas and grounds maintenance.

Who is eligible for Shared Ownership?

Shared Ownership is aimed at first time buyers and others who don’t currently own a home. To qualify, applicants must:

• Have an annual household income of £90,000 or less in London (or £80,000 outside of London).
• Be unable to buy a suitable home outright on the open market.

Some local authorities or housing providers may also ask for a local connection to the area.

While Shared Ownership primarily supports first time buyers, it is also open to other eligible applicants, including those who have owned another home in the past or are planning to sell their current home before buying through Shared Ownership.

Housing providers will check whether applicants are eligible for Shared Ownership homes.

How does Shared Ownership allocation and prioritisation work?

Housing providers also check whether applicants can afford Shared Ownership homes, looking at the household’s income and the cost of mortgage repayments, rent and service charges.

Some groups may get priority for homes in the first three months for which they’re advertised:

• The Mayor also encourages boroughs and housing providers to prioritise key workers, as defined here, for Shared Ownership homes.

• Military personnel have priority for government-funded Shared Ownership homes. This includes serving members and veterans discharged within the last two years.
• In some boroughs, people who live or work locally may have priority.

Individual boroughs or housing providers may have their own eligibility or prioritisation rules.

Every provider must have a clear allocation process that explains how they allocate homes and when priority rules apply.

How much does Shared Ownership cost?

Buying through Shared Ownership involves both upfront and ongoing monthly costs.

Upfront costs include:

• Deposit: Often 5–20 per cent of the value of the share being purchased, but this will depend on the buyer’s finances.
• Mortgage and solicitor fees: These will vary based on the lender and conveyancing solicitor. Some buyers may also choose to work with a mortgage broker.
• Stamp Duty: First time buyers currently pay no Stamp Duty on the first £300,000 of homes worth up to £500,000. The buyer can choose to pay on their share or the full value of the home. If they pay on the full value of the home, they will not need to pay Stamp Duty if they buy further shares.
• Moving expenses: Budget around £3,000–£5,000 for moving costs.

Monthly costs include:

• Rent: For new build homes, rent is usually 2.75 per cent of the value share retained by the housing provider. For resale homes, the rent usually stays at the same level the previous owner was paying. Housing providers usually increase rent annually, in line with inflation.
• Mortgage repayments: Based on the share, loan amount, and interest rate.
• Service charges: Cover communal maintenance, building insurance and management costs. The Mayor expects providers to manage service charges in line with his Shared Ownership Service Charges Charter.
• Insurance: Buildings insurance is arranged by the provider and usually included in the service charge. Contents insurance is the buyer’s responsibility.

Buyers might also have extra costs if they staircase, extend their lease, or sell their home later on.

Where can you find Shared Ownership homes?

Londoners can search for Shared Ownership homes on the new Homes for Londoners property portal, powered by Share to Buy – the country’s leading portal for affordable homeownership and buying schemes.

For homes outside London, visit the Share to Buy website to view available Shared Ownership homes.

Shared Ownership for people with disabilities

Eligible buyers can apply for a scheme called Home Ownership for people with Long-term Disabilities (HOLD), if Shared Ownership homes do not meet their needs. This scheme enables buyers to purchase a share of a home being sold on the open market on a Shared Ownership basis.

Shared Ownership applicants should look for a suitable home on the open market and work with a housing provider to buy the property through Shared Ownership.

Shared Ownership for older buyers

Buyers who are aged 55 or over may buy homes provided through the Older Persons Shared Ownership (OPSO) scheme.

With Older Persons Shared Ownership, buyers can purchase a share between 25 per cent and 75 per cent of a home. The main difference from Shared Ownership is that, once the owner has purchased 75 per cent of the home, they won’t pay rent on the remaining 25 per cent share.