When people talk about homestays, a term often used interchangeably with shared ownership or co-living arrangements where you own part of a home and rent the rest. Also known as shared equity, it’s a path to owning property without needing the full price tag—but it’s not as simple as it sounds. This isn’t just about splitting rent. It’s about buying a percentage of a home—like 25%, 50%, or more—while paying rent on the part you don’t own. That rent goes to a housing association or private landlord, and you’re stuck with service charges, maintenance fees, and rules that can change without warning.
One big thing people miss? shared ownership, a government-backed housing model designed to help first-time buyers get on the property ladder. Also known as part-buy, part-rent, it’s popular in the UK, but it’s not a free pass to full ownership. You can buy more shares over time through a process called staircasing, the step-by-step way to increase your ownership stake until you own 100%. Also known as equity purchase, it sounds great—until you realize each step costs thousands in valuation fees, legal bills, and lender charges. And if you ever want to sell? You can’t just list it on Rightmove. The housing association gets first pick, and you might get less than market value.
Then there’s property shares, the actual percentage of ownership you hold in a shared home. Also known as equity stake, it’s not just a number—it affects your mortgage, your rent, your taxes, and your ability to make changes to the property. Want to install a new kitchen? You need permission. Want to keep a dog? Check the lease. Want to fix up the garden? You might have to pay for it yourself, even if you own 80% of the home. And if you fall behind on rent or service charges, you can lose your share—even if you’ve paid 70% of the mortgage.
Homestays aren’t for everyone. They work if you’re stuck between renting and buying, have a stable income, and understand the fine print. But if you’re looking for freedom, flexibility, or quick equity growth, you might be better off saving longer or looking elsewhere. The posts below break down real cases—what went wrong, what went right, and what no one tells you before you sign.
