The main affordable home ownership product offered by housing associations is shared ownership.
Housing associations have built and sold 103,000 shared ownership homes in the last decade, and plan to meet the growing demand for this product. These homes have helped a wide range of people get onto the housing ladder – from the under-25s to people aged over 60.
Shared ownership is a more affordable way to buy your own home. Under the new model, you buy an initial percentage of the property, between 10% and 75%, and pay a reduced rent on the rest to a housing association.
The new model also has other benefits for shared owners:
- A 990-year lease as standard (this will also be applied to existing shared owners).
- The option to staircase (buying more shares in the property) in 1% increments per year for 10 years without undertaking a valuation. Other staircasing transactions are reduced to a minimum of 5% rather than 10%.
- The responsibility for housing associations to contribute up to £500 a year towards certain repairs and maintenance costs in the first 10 years of ownership. This contribution can be rolled over for one year.
Shared ownership homes can be purchased with a deposit of at least 5% of your share of the property and a mortgage to cover the rest. After becoming a shared owner, you can buy more shares in the property, usually increasing to up to 100%. Around 4,000–5,000 shared owners a year staircase to full ownership.
To find out more about the detail of the proposals, you can read our member briefing.
To find out more about buying a shared ownership home, understand if you are eligible, or see shared ownership homes available in your area, visit the shared ownership website.
Take a look at some commonly asked questions about shared ownership, and read legally verified responses and guidance from us and Trowers & Hamlins.
Our shared ownership campaign
In 2020 we successfully launched a national advertising campaign to raise awareness of shared ownership, supported by almost 50 organisations. This included the first ever national shared ownership website and portal, alongside a new brand and narrative.
The campaign ran across a wide range of platforms including social media, YouTube, outdoor advertising in key cities, and a partnership with The Guardian.
Following this successful start, the campaign is now being delivered by Keaze, and will continue to build the brand of shared ownership across the country. To find out more about the campaign and its next steps you can:
Our policy work on shared ownership
We have worked alongside the government and Homes England to make sure changes to the model of shared ownership are right for housing associations as well as potential customers.
Our current work is focused on ensuring our members are prepared for and supported through undertaking practicalities of the new model of shared ownership. We have produced guidance on what the new model entails for providers and are hosting events where our members can share ideas and expertise on the process.
We are monitoring the impact that the introduction of First Homes is having on the provision of shared ownership and the provision of affordable housing more generally, and are in regular contact with the Department for Levelling Up, Housing and Communities (DLUHC) on shared ownership issues.
Right to Shared Ownership
Right to Shared Ownership allows eligible social housing tenants to purchase their social or affordable rented home on the same basis as a shared ownership property – that is, buying a percentage of the property, and paying a reduced rent on the rest to a housing association.
People exercising the right to shared ownership will receive the same benefits. The Right to Shared Ownership will be available to tenants living in social and affordable rent homes funded by the new affordable homes programme.
The impact of this right to shared ownership is still unknown but we are working with our members to understand any potential problems. We’re also working with the government to ensure they understand any potential impacts on other affordable and social housing development.