Shared ownership: a personal perspective

Shared ownership is a topic I am passionate about because it helped me become a homeowner.

Having personally benefited from the scheme, and having worked on shared ownership sales, purchases and staircases since 2012, I have seen the difference it can make for first-time buyers and existing homeowners.

What is shared ownership?

Shared ownership is a scheme designed to help people buy a home when they would otherwise be unable to afford to do so. At the time of purchasing a shared ownership property, a RICS Valuation sets the market value for the property and you are then assessed to determine the share you can afford. You will then pay specified rent on the share of the property you don’t own.

The property therefore becomes more affordable because the deposit and mortgage required are based on the share you are purchasing, rather than on the full value of the property.

For example, if a property is valued at £400,000 and you are assessed as being able to afford £140,000 by way of a mortgage and deposit, you would be able to purchase a 35% share of the property, as 35% of £400,000 is £140,000.

What is staircasing?

Staircasing is the optional process of buying additional shares in your property over time to gradually increase your ownership percentage. This gives you the opportunity to become a homeowner immediately when you purchase your initial share, while continuing to save for the remaining shares.

If, in the future, you are able to staircase to 100%, the shared ownership arrangement will come to an end and you will no longer pay specified rent.

Who can use the scheme?

It’s important to note that the scheme is not only for first-time buyers. The scheme is also suitable for previous homeowners who need to get back on the property ladder, current homeowners who need to sell their property due to a change in personal circumstances and current shared ownership homeowners looking to move.

The scheme creates opportunities for people who might otherwise feel home ownership is out of reach.

Finding a shared ownership property

Shared ownership properties can be found by contacting your local housing associations and estate agents. Currently, to qualify for the scheme, your household income must be £80,000 a year or less outside London, or £90,000 a year or less in London, and you must be unable to afford a property that meets your needs.

My personal experience of shared ownership

When I was saving for my first home, I was privately renting and didn’t have a sizeable deposit. Shared ownership was therefore the perfect option for me.

The scheme allowed me to purchase a 35% share of my property and later staircase to 100% when the time was right for me. Before working as a conveyancer, I had not heard of the shared ownership scheme. Having gone through the process myself, I know how valuable it can be for people who want to buy a home but feel that traditional routes into home ownership are out of reach.