Shared Ownership in 2025: Is It the Right Choice for You?

Explore the benefits and considerations.

Buying a home can feel out of reach for many, especially with rising house prices and high deposit requirements. If you’re struggling to get on the property ladder, Shared Ownership could be an option worth considering in 2025.

At Endurance Mortgages, we help first-time buyers and those with smaller deposits find the best way to own a home. This guide will walk you through what Shared Ownership is, how it works, and whether it’s the right choice for you.

1. What Is Shared Ownership?

Shared Ownership is a government-backed scheme designed to help people buy a home if they can’t afford to purchase outright. Instead of buying the whole property, you buy a share (usually between 10% and 75%) and pay rent on the rest.

How it works:

• You take out a mortgage for the share you buy.

• You pay rent to a housing association on the remaining share.

• Over time, you can buy more shares in the property through a process called staircasing, which reduces the rent you pay.

• Once you own 100% of the property, you no longer pay rent—just your mortgage.

Shared Ownership makes homeownership more affordable upfront, but there are important things to consider before deciding if it’s right for you.

2. Who Can Apply for Shared Ownership in 2025?

To qualify for Shared Ownership in England, you must meet certain criteria:

• Your household income must be below £80,000 (or £90,000 in London).

• You must be a first-time buyer or not currently own a home.

• If you previously owned a home but can’t afford to buy again, you may still qualify.

• You must be able to secure a mortgage or have savings to cover the deposit for your share.

Shared Ownership properties are usually new-build homes or resale homes (called Shared Ownership resales) where a previous owner is selling their share.

3. The Benefits of Shared Ownership

Shared Ownership offers several advantages, making it a popular choice for first-time buyers:

Lower Deposit Requirements

Because you’re buying a percentage of the property, the deposit is based on the share you buy, not the full property price. For example, if you buy a 25% share in a £200,000 home (£50,000), a 5% deposit would be just £2,500—far more affordable than saving for a full mortgage deposit.

Easier to Get a Mortgage

Since you’re borrowing less than a full mortgage, lenders may be more willing to approve your loan, even if you have a lower income or are a first-time buyer with limited credit history.

Option to Buy More Shares Over Time

If your finances improve, you can increase your share in the property through staircasing. This means that as you own more of the home, you pay less rent.

Newer, High-Quality Homes

Most Shared Ownership properties are modern new builds with energy-efficient designs, meaning lower utility bills and reduced maintenance costs.

More Affordable Than Renting

In many areas, Shared Ownership can be cheaper than renting privately, especially when you consider the long-term benefit of building equity in your home.

4. Things to Consider Before Choosing Shared Ownership

While Shared Ownership makes homeownership more accessible, there are some important factors to keep in mind.

You Still Pay Rent

Even though you own a share of the property, you still pay rent on the remaining share. This means your monthly costs include both a mortgage and rent—though this is often cheaper than renting privately.

Staircasing Can Be Expensive

If you plan to buy more shares later, you may have to pay:

• Additional legal fees.

• Property valuation costs.

• Stamp Duty (depending on your total share).

Make sure you factor in future costs before deciding if this option is right for you.

Restrictions on Selling

Selling a Shared Ownership home isn’t as straightforward as selling a regular home.

• If you own less than 100%, the housing association usually has the right to find a buyer first.

• Some properties come with restrictions on who can buy them (for example, local residency requirements).

If you think you might need to move within a few years, check the resale rules before committing.

Leasehold Property Rules

Most Shared Ownership homes are leasehold properties, meaning you don’t own the land, and you may have to pay:

• Ground rent

• Service charges (especially in flats)

Always check these costs before signing any agreements.

5. Is Shared Ownership Right for You?

Shared Ownership may be a good option if:

• ✔ You can’t afford to buy a home outright but want to start building equity.

• ✔ You have a stable income but only a small deposit saved.

• ✔ You’re comfortable paying both rent and mortgage repayments.

• ✔ You plan to stay in the home for several years and possibly buy more shares.

It may not be the best option if:

• ✖ You want to move frequently, as selling can take longer.

• ✖ You’re not comfortable with the extra costs of staircasing.

• ✖ You prefer to own a home outright with no rent to pay.

If you’re unsure, speaking to a mortgage advisor can help you weigh up the pros and cons based on your financial situation and future plans.

6. How to Get Started with Shared Ownership

If you think Shared Ownership is the right choice for you, here’s how to begin:

• Check your eligibility – Ensure you meet the income and first-time buyer requirements.

• Find available properties – Look on housing association websites and property portals.

• Apply for a mortgage – A mortgage broker can help you find lenders offering Shared Ownership mortgages.

• Reserve your home – Pay a small deposit to secure your chosen property.

• Complete the legal process – A solicitor will guide you through contracts, lease agreements, and final payments.

• Move in and start your homeownership journey.

At Endurance Mortgages, we specialise in Shared Ownership mortgages and can help you navigate the process from start to finish.

Final Thoughts

Shared Ownership is a great option for buyers who want to get on the property ladder with a lower deposit and more affordable mortgage payments. While it comes with some restrictions and extra costs, it offers flexibility, security, and the chance to own more of your home over time.

To decide if Shared Ownership is right for you:

• ✔ Understand the benefits and limitations.

• ✔ Compare it to other mortgage options.

• ✔ Get expert advice from a mortgage broker.

If you’re considering Shared Ownership in 2025, Endurance Mortgages is here to help. Contact us today to explore your mortgage options and take the next step towards homeownership.

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Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.