Shared Ownership: Rights, Costs, and What Can Go Wrong
Shared ownership allows you to buy a share of a property (usually between 10% and 75%) and pay rent on the remaining share to a housing association. It was designed to help people onto the property ladder, but it comes with significant risks and obligations that are often not made clear at the start. This guide explains how shared ownership works, your rights as a shared owner, the true costs involved, and what to do if you face problems.
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
How shared ownership works
In shared ownership:
- ✓You buy a share of the property, typically between 10% and 75%, using a mortgage and/or savings
- ✓You pay rent to the housing association on the share you do not own
- ✓You pay a monthly service charge for maintenance of communal areas and the building
- ✓You own a leasehold interest, not freehold, and the housing association (or landlord) owns the freehold
- ✓You are responsible for all maintenance and repairs inside your home, just like a full owner
- ✓The Shared Ownership model was overhauled in April 2021, new-model shared ownership has different rules to older leases
The true costs of shared ownership
Shared ownership often costs more per month than people expect. The full monthly outgoings typically include:
Staircasing, buying more of your home
Staircasing means buying additional shares in your property over time, reducing the rent you pay. The rules depend on whether you have a new-model or old-model lease:
| Feature | New model (post-April 2021) | Old model (pre-April 2021) |
|---|---|---|
| Minimum staircase purchase | 1% of property value | Usually 10% of property value |
| Maximum ownership via staircasing | 100% (full ownership) | 100% (but some rural exception properties are capped at 80%) |
| How many times can you staircase? | Unlimited (1% tranches up to 3 per year) | Usually unlimited in 10%+ tranches |
| Valuation required? | Yes, RICS valuation at your cost (£250 to £500+) | Yes, RICS valuation at your cost |
| When does rent reduce? | Proportionally as you buy more shares | Proportionally as you buy more shares |
- ✓Staircasing is based on the current market value, not your original purchase price
- ✓If property values rise, staircasing becomes more expensive over time
- ✓Once you staircase to 100%, you own the property outright (freehold if the housing association agrees to transfer it)
- ✓Each staircase transaction involves legal fees, SDLT, and valuation costs, budget £1,500 to £3,000+ per transaction
- ✓Rural exception properties: some rural shared ownership leases cap ownership at 80%, check your lease
Selling your shared ownership property
Selling a shared ownership property is more complicated than selling a freehold home:
Service charge disputes
Service charges are one of the most common sources of dispute for shared owners. As a leaseholder, you have important rights:
- ✓Service charges must be 'reasonable', you can challenge unreasonable charges at the First-tier Tribunal (Property Chamber)
- ✓You have the right to request a summary of service charge accounts and inspect supporting receipts and invoices
- ✓Your housing association must consult you before carrying out major works costing more than £250 per leaseholder, this is the Section 20 consultation process
- ✓If they fail to consult, they cannot recover more than £250 per leaseholder for those works from service charges
- ✓You can apply to the First-tier Tribunal to challenge the reasonableness of service charges, or to determine what charges are payable
- ✓You can apply to the Tribunal for the right to appoint your own managing agent if the current management is inadequate
Repairs and maintenance
Responsibility for repairs in shared ownership depends on whether they are communal (building association's responsibility) or internal (your responsibility):
- ✓You are responsible for internal repairs, decorating, appliances, fixtures and fittings
- ✓The housing association is responsible for structural repairs, the roof, external walls, communal areas, and shared services
- ✓Under the new model (post-April 2021): your housing association must repair structural defects for the first 10 years, even if this would normally fall to you
- ✓If you can't get repairs done by the housing association, escalate to the Housing Ombudsman (free, independent)
- ✓Damp and mould: if the cause is structural (e.g. a failing roof or external wall), the housing association must repair it, see our damp and mould guide for enforcement options
- ✓Buildings insurance (included in your service charge) covers structural damage, not contents
Lease length and extension
As a leaseholder, your lease has a set term, most shared ownership leases start at 99 or 125 years. A short lease can make your property very difficult to mortgage and sell:
- ✓When a lease falls below 80 years, it becomes difficult to remortgage or sell
- ✓Lenders typically want at least 70 to 85 years remaining on the lease at the end of the mortgage term
- ✓You can extend your lease, but unlike private leaseholders, shared owners have a more complicated route
- ✓Under the Leasehold Reform, Housing and Urban Development Act 1993, shared owners who have staircased to 100% have the standard right to extend the lease by 90 years
- ✓Shared owners who have not staircased to 100% may be able to negotiate an extension with their housing association, but there is no statutory right until ownership is 100%
- ✓The Leasehold and Freehold Reform Act 2024 proposes reforms that may improve shared owners' rights to extend leases
What to do if things go wrong
- ✓Service charge dispute: apply to the First-tier Tribunal (Property Chamber), free to apply, independent decision
- ✓Repairs not done: Housing Ombudsman (for housing associations), free independent service
- ✓Lease problems: consult a solicitor specialising in leasehold, or contact the Leasehold Advisory Service (LEASE) for free initial advice
- ✓Eligibility dispute or unlawful term in your lease: Citizens Advice or Shelter can help
- ✓Financial difficulty (can't afford rent + mortgage + service charge): contact your housing association before you fall behind, most have hardship policies. Also contact your lender.
- ✓Eviction for arrears: contact Shelter immediately, you have defences and time to resolve arrears
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
How does shared ownership work?
You buy a share of a property (usually 10 to 75%) with a mortgage and/or savings, and pay rent to the housing association on the remaining share. You also pay a monthly service charge for building maintenance. You can increase your share over time through 'staircasing', buying additional portions until you own the property outright. Under the new model (post-April 2021), you can staircase in 1% increments.
What is staircasing in shared ownership?
Staircasing means buying additional shares in your property to increase your ownership stake and reduce the rent you pay. Under new-model shared ownership (post-April 2021), you can buy as little as 1% at a time (up to 3 times per year). Under older leases, the minimum was typically 10%. Each staircase is based on the current market value, not your original purchase price, and involves valuation, legal, and SDLT costs.
Can I sell my shared ownership property?
Yes, but the process is more complex than a normal sale. You must usually give the housing association a nomination period (4 to 8 weeks) to find a buyer from their waiting list. The sale price is set by a RICS valuation, you cannot negotiate above it. If the housing association cannot find a buyer, you can market on the open market, but the buyer must still meet shared ownership eligibility criteria. Use a solicitor experienced in shared ownership.
Can I challenge my service charge?
Yes. Service charges must be reasonable. You can apply to the First-tier Tribunal (Property Chamber) to challenge whether charges are reasonable or payable. Your housing association must consult you (Section 20 consultation) before carrying out major works costing more than £250 per leaseholder, if they don't, they cannot recover more than £250 from service charges for those works. You can also request a summary of accounts and inspect the underlying invoices.
What happens if I can't keep up with shared ownership costs?
Contact your housing association immediately, before you fall into arrears if possible. Many have hardship schemes and can arrange temporary rent reductions or payment plans. Also contact your mortgage lender. If you are at risk of eviction for arrears, get advice from Shelter urgently, you have legal defences and time to resolve the situation. In serious financial difficulty, seek advice from Citizens Advice or a debt charity about whether shared ownership is sustainable.
Related guides
Found this useful? Link to it
If you run a site, write an article, or help others with their rights, please link to this guide, it helps more people find free, reliable guidance.