Buying a home is a dream come true for most, but the high UK housing prices make it difficult. Shared ownership is now on the rise among first-time buyers and families looking for cheap methods to get onto the housing ladder. With lower deposits and lower initial payments, it sounds like a tempting deal. Is shared ownership worth it in the UK at present? Let’s look at its advantages, disadvantages, and alternatives to decide.

What Is Shared Ownership?  

Shared ownership is a UK government-supported program designed to open the door to homeownership. Instead of outright buying 100% of an apartment or house, you buy a percentage of it (usually between 25% and 75%) and pay rent on the remaining share, owned by a housing association.

Shared ownership explained in the UK:

You borrow a mortgage for your share of the property and pay a reduced deposit (according to the percentage you’re purchasing).

Rent is typically less than for comparable private tenancies, so it is cheaper when seen from a broader perspective.

Eventually, you can have the opportunity to “staircase”. This means you can increase your percentage ownership over time until you own the property in full (if you prefer).

Who Is Eligible for Shared Ownership in 2025?  

Eligibility is different in many ways, but normally, applicants in England must have a household income below £80,000 (or £90,000 in London). It’s a great option for first-time buyers, people who have owned previously but can no longer afford to do so, and even renters who want to save on housing costs. Refer to housing association guidance for the most recent shared ownership eligibility in the UK in 2025.

Pros of Shared Ownership in 2025  

Shared ownership offers several advantages that make it appealing, especially in today’s dynamic housing market.

1. Smaller Deposit Requirements  

Homeownership typically requires dauntingly large deposit sums. In shared ownership, your deposit is a percentage of the house price, which is typically much more manageable.

For example, when you buy 25% of a £200,000 house, your deposit is calculated only on the £50,000 portion, not the total property value. This lowers the threshold for those with less savings.

2. Lower Monthly Costs  

The combination of partial mortgage payments and reduced rent makes shared ownership more affordable than standard renting or full homeownership. It enables buyers with modest incomes to live in areas they might otherwise be priced out of, such as city centres or desirable suburbs.  

3. Access to New-Build Homes or Desired Locations  

Shared ownership schemes often focus on new-build properties in high-demand areas, giving buyers access to modern homes equipped with contemporary features while staying within their budgets.

4. Staircasing Flexibility  

The ability to staircase shared ownership in the UK is a critical benefit. Over time, if your financial situation improves, you can purchase additional shares (in increments of 10% or more). This allows you to work towards owning your home fully without the pressure of a traditional mortgage.

Cons and Risks to Be Aware Of  

Before committing to shared ownership in the UK, it’s important to understand the drawbacks.

1. Limited Property Selection  

Shared ownership properties may not always be available in your desired area and are often restricted to developments overseen by housing associations.  

2. Rent Can Increase Over Time  

Initial rent payments may be affordable, but housing associations can raise rents periodically, which could be challenging if you’re on a tight budget.

3. Maintenance Responsibility Without Full Ownership  

Even though you don’t fully own the property, you’re responsible for maintenance and repair costs, which can feel unfair alongside rent and service charges.  

4. Complexity When Selling  

Selling a shared ownership property in the UK can be lengthy. Housing associations often market your property first, delaying sales and limiting buyers.

5. Unpredictable Costs When Staircasing  

The cost to buy more shares depends on the property’s current valuation, which could rise. This also involves valuation fees, legal costs, and potential rent increases for the remaining share.

6. Restrictions on Alterations  

Making significant changes (e.g., a new kitchen) typically requires approval from your housing association, limiting how much you can personalise your home.

Is Shared Ownership Right for You in 2025?  

Shared ownership is ideal for those with limited deposits looking for short-term affordability, particularly in high-demand cities. However, long-term factors like rent increases, maintenance costs, and selling complexities should be considered. For some, alternative schemes may offer more flexibility. Thinking of first time buyer shared ownership? Seek financial or legal advice before committing.

Alternatives to Shared Ownership  

Not sure if shared ownership is for you? Consider these alternatives to shared ownership in the UK instead:

1. First Homes Scheme  

Designed for first-time buyers in England, this scheme allows you to purchase a new-build property at a discount of up to 30% (or more in some regions).  

2. Lifetime ISA  

Buyers who opened a Help to Buy ISA or Lifetime ISA can leverage these savings tools to build deposits with government contributions.  

3. Rent-to-Buy  

This option lets you rent a home at reduced rates while saving toward a purchase. It’s ideal for those not yet ready for full ownership.  

4. Guarantor Mortgages  

If you’re struggling to secure a mortgage independently, a guarantor (like a parent) can help you access better terms.  

5. No-Deposit Mortgages  

While less common, some lenders offer mortgages that don’t require an upfront deposit. These might appeal to young buyers with limited savings but stable incomes.

A shared ownership mortgage in the UK has unique terms. Fewer lenders offer these mortgages, and their terms can vary. Your deposit is based on the value of the share you’re buying, not the full property price. Choosing an experienced lender can simplify the process.

Final Thoughts: Should You Consider Shared Ownership?  

Shared ownership in 2025 offers affordability and access to housing for first-time buyers with smaller savings, especially in high-value areas. However, consider potential rent increases, maintenance costs, and the complexities of staircasing or selling.  

Consult reliable resources and seek financial and legal advice to make an informed decision. Take your time and evaluate your goals.