Shared Ownership: What Do You Call It When You Own a Home Together?

• by Corbin Fairweather
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You know that feeling when you look at house prices and feel your stomach drop? Yeah, you’re not alone. With traditional buying getting tougher, more people are turning to shared ownership. So, what do you call it when you own just part of your home, and someone else owns the rest? That’s called shared ownership. It’s way more common than you might think, especially for first-time buyers who can’t swing a full deposit or mortgage.

This setup means you buy a chunk of the property (sometimes just 25% or so), and rent the rest from a housing association or private company. You live there just like you would if you owned it all, but you pay a smaller mortgage and some rent, which keeps your monthly costs down.

No need for a giant savings account, no need to get a scary-sized loan. Shared ownership flattens some roadblocks and, honestly, opens doors for so many people who thought homeownership was off the table.

• What's Shared Ownership Anyway?
• How Does Shared Ownership Actually Work?
• Who Should Consider Shared Ownership?
• Tips for Making Shared Ownership Work for You

What's Shared Ownership Anyway?

Ever wish you could just pay for the part of a house you actually use? That’s the whole idea behind shared ownership. Instead of saving up for years and years for a whole house, you just buy a portion—usually between 25% and 75%. A housing association or builder owns the rest, and you pay them rent on that chunk. It’s a real, legit scheme in the UK, used by over 200,000 households and counting. The government actually backs it, so it isn't some shady loophole.

Here’s a quick breakdown of how it works:

• You buy a share of a new-build or sometimes a resale home.
• A housing association (sometimes a private developer) owns the rest and charges you discounted rent.
• You can usually “staircase” up—that means you gradually buy bigger shares over time, if and when you can afford it.
• This setup is only for people who don’t already own a home, with income caps to keep it fair.

One big myth: You don’t actually share the home with strangers. You get your own place; you’re just splitting the ownership and costs behind the scenes.

The UK government shared,

“Shared ownership is intended to help people who would otherwise struggle to buy their own home get onto the property ladder.”

Want some numbers? Here’s a glance at average shared ownership shares and costs in England in 2024:

The bottom line: If you don’t have a giant deposit or six-figure salary, this path might actually be your shot at owning a front door and some keys with your name on them.

How Does Shared Ownership Actually Work?

Let’s break it down, step-by-step, so you know exactly what happens with shared ownership homes. Imagine this: you buy a slice of the property — let’s say 40%. The rest is owned by a housing association. You pay a mortgage on your chunk and rent on the other chunk. Here’s the cool part: you only need a deposit for the part you’re buying. If a place costs £250,000 and you buy 40%, that’s £100,000 — so your deposit might only be a few thousand pounds, not the usual mountain of cash people think you need.

Banks see shared ownership as safe, so plenty of big lenders are happy to give mortgages for your share. After you move in, it works a bit like normal homeownership. You decorate, live there, even keep pets if the lease allows. Over time, you can buy more. This is called "staircasing" — and if you hit 100%, you stop paying rent altogether and fully own the place.

• You choose your share (usually from 25% to 75%).
• Pay a deposit and arrange a mortgage for just that share.
• The housing association owns the rest. You pay rent to them (usually below market rate).
• Living there, you cover service charges, repairs inside, and your bills — normal house stuff.
• If your finances improve, you can buy more of the home later.

Check out how it might look cost-wise:

*Typical rent is about 2.75% of the value of the part you don’t own.

One thing: you’re still on the hook for things like maintenance and repairs, just like a regular homeowner. And if you sell, you usually have to tell the housing provider first, but after that, it’s pretty much a normal sale process.

This system gets a lot of people on the property ladder, especially in places where homes are out of reach for most folks. In England alone, over 200,000 households live in shared ownership homes, and the number keeps growing every year.

Who Should Consider Shared Ownership?

Shared ownership isn’t just for people who can’t get a mortgage. It’s for anyone who wants a legit, practical way to get into the housing market—especially if you’re not sitting on a pile of cash. Let’s get specific. If you’re a first-time buyer, single parent, or just sick of renting but can’t afford to buy 100%, this could be your ticket.

Here’s a quick look at who usually fits the bill for shared ownership:

• First-time buyers: If the idea of saving a 20% deposit makes you laugh/cry, shared ownership can drop that down to something doable.
• People earning less than £80,000 (£90,000 in London): Nearly all shared ownership schemes stick to this threshold, so you can’t be earning six figures to qualify.
• Families stuck in private rentals: The monthly cost of rent and mortgage together is often less than “just renting” in most areas. It actually saves money for a lot of folks.
• Older buyers (55+): In England, there’s a version called “Older People’s Shared Ownership” where you can own up to 75% (and the rest is rent-free).

Check out this table on average shared ownership buyer profiles from real UK stats:

A couple more things. You don’t have to buy alone—you can apply with a partner, friends, or even family. And there’s no shame in using shared ownership as a stepping stone. Some people start with 25%, then "staircase" their way up to full ownership as their finances improve. If you’re tired of paying someone else’s mortgage and want a slice of your own, shared ownership is made for you.

Tips for Making Shared Ownership Work for You

When you decide to jump into shared ownership, you want to get the most out of it and avoid surprises. Getting it right comes down to a few smart moves and knowing what to expect. Here’s what people usually miss—and what you don’t want to overlook.

• Read the small print: Every shared ownership agreement is a little different. Make sure you know exactly how much rent you’ll pay, what happens if you want pets, redecorate, or bring in a roommate. Some housing associations have strict rules about these things.
• Find out about staircasing: This means buying a bigger share later, and maybe ending up owning the whole place. Check if there are any caps on how much you can staircase, or if there are extra fees. About 20% of shared owners actually go on to buy 100% of their home—so lots don’t, and there’s nothing wrong with that.
• Budget for everything (not just your share!): Shared owners still have to pay 100% of some bills—like council tax, service charges, and maintenance. A new home usually has an annual service charge. Depending on your area, this could range from £1,200 to £2,500 per year.
• Watch out for lease length: Most shared ownership homes are leasehold. Properties with less than 80 years on the lease can be harder to sell and more expensive to renew. Always check the lease length before buying.

Curious about how the numbers break down for typical shared ownership costs? Here’s what you might expect for a standard property outside London:

If you add that up, buying a 25% share can mean around £1,000 a month in housing costs, which is usually cheaper than renting the full market price. But if your household budget is already tight, don’t forget that repairs and maintenance can pop up from nowhere.

Tip from real life: If you’re planning to eventually buy a bigger share, start saving early—even just a small amount monthly. A lot of people think it’ll be easy to staircase but stall because they never built up the cash. Another tip? Track your service charge and maintenance closely, and don’t be afraid to ask your housing association for full breakdowns. Sometimes you spot something you don’t actually use—like a communal bike store—or catch mistakes.

One more thing: check what happens if you need to sell. Some shared ownership providers have an 8-week period where they get the first crack at selling your share, which might slow things down if you’re in a hurry. Always ask about the resale process up front.