When mum-of-one April Mathieson started exploring the idea of getting on the property ladder, she knew she wanted to be near friends and family. The 33-year-old teacher found her options limited with what she could afford in her desired location. Her sister had used the shared ownership scheme, so April decided to use it herself to purchase a 50% share of a property in Preston, Lancashire.
What is Shared Ownership?
Shared ownership allows buyers to purchase a portion of a property—typically between 25% and 75%, but sometimes as low as 10%—and pay rent on the remainder. Buyers can then 'staircase' by purchasing additional shares until they own 100% of the home.
April's Journey
April bought her first shared ownership home in 2020 with a 50% share. Just two years later, she sold it and staircased her current three-bed semi-detached home to 100%. She had a six-year-old son and said, 'I bought my first shared ownership home literally the month before lockdown. I was very, very lucky.' Her salary increased over time, and she saved aggressively, sacrificing social outings to fast-track her staircasing. 'I didn't do much. I didn't go out a lot. I did sacrifice quite a bit,' she said.
When staircasing, the cost is based on an independent market valuation at the time of purchase, meaning you pay more if property values rise. April noted, 'The best factor that helped me was my salary going up. The extra deposit that I paid was £7,000—achievable in 18 months for me.'
Benefits and Considerations
A survey by West Brom Building Society found 79% of shared ownership users say it helped them onto the property ladder, and 54% have lower monthly costs than renting. However, buyers pay rent to the housing association on the share they don't own, which usually increases annually, plus service charges. They are also fully responsible for maintenance and repairs, even if they own only a fraction.
When selling, the housing association typically has an eight-week 'nomination period' to find a buyer for your share. If they fail, you can sell on the open market.
Expert Insight
Kelly McCabe, Managing Director at The Mortgage People, said shared ownership is increasingly used after major life changes like divorce or downsizing. 'Shared ownership continues to play an important role in helping people access the housing market at a time when affordability remains one of the biggest barriers to homeownership,' she said. 'It is important that buyers fully understand the costs involved and take advice to ensure it suits their circumstances.'
April's Success Story
For April, shared ownership allowed her to move back to the village where she grew up, near friends and family. 'If I didn't do shared ownership, I wouldn't have been able to live in the area that I wanted to,' she said. 'The level of money I would have needed to make a house habitable on the open market was unrealistic. It just changed my life really. My son goes to school, but if I can't pick him up, now all of my sisters can be there.'
To qualify for shared ownership, household income must be £80,000 or less (£90,000 in Greater London), based on the combined gross income of all mortgage applicants.
