When you talk about owning shares, buying a portion of a home while paying rent on the rest. Also known as shared ownership, it’s a way to get onto the property ladder without needing a huge deposit. This isn’t just for first-time buyers—it’s for anyone who wants to own part of a home but can’t afford the full price. You might buy 25%, 50%, or 75% of a property, and the housing association or developer owns the rest. You pay a mortgage on your share and rent on the part you don’t own.
Staircasing, the process of buying more shares over time until you own 100%. Also known as equity purchase, it lets you slowly take full control of your home. Most shared ownership schemes let you increase your share in 10% increments, but each step comes with valuation fees, legal costs, and sometimes higher mortgage payments. You don’t have to staircase—some people stay at 50% for years. But if you do, you’ll eventually stop paying rent and own the whole thing outright. That’s where affordable housing, government-backed programs designed to help people who earn too much for social housing but too little for the open market comes in. These schemes are only available in certain areas, mostly in the UK, and often have income caps. You can’t buy a shared ownership home if you earn over £80,000 a year in London, or £60,000 elsewhere.
It’s not all smooth sailing. Owning shares means you’re stuck with leasehold rules, service charges, and restrictions on renovations. You can’t just knock down a wall or install a new kitchen without permission. Selling your share is harder too—you can’t just list it on Rightmove. The housing association has the first right to find a buyer, and they might only accept someone who also qualifies for shared ownership. And if you fall behind on rent or mortgage payments, you risk losing your share—even if you’ve paid for 80% of the home.
But here’s the truth: for thousands of people, owning shares is the only way to become a homeowner. It’s not a shortcut, but it’s a real one. You’ll need to understand how rent is calculated, what fees come with staircasing, and how your share value changes over time. The posts below break down exactly how to calculate your share, what happens when you sell, the hidden costs you can’t ignore, and how to move from 50% to 100% ownership without getting blindsided.
