Shared ownership lets you buy a share of a home, between 10% and 75% of its full market value, and pay rent to a landlord on the rest. All shared ownership homes are leasehold. This guide covers the costs, staircasing, selling, service charges, repairs and lease length in England, and where to complain.
Key points
✓You buy a share between 10% and 75% of the home's full market value, pay rent to the landlord for the share they own, and usually pay monthly ground rent and service charges as well
✓Staircasing means buying more shares in your home in the future, and your rent goes down because it is based on the landlord's share
✓If you bought on or after 1 April 2021, you may be able to buy shares of 1% each year for the first 15 years; ask your landlord if this applies to you
✓If you do not own 100% of your home, you must tell your landlord when you want to sell, and they have a nomination period of 4, 8 or 12 weeks to find a buyer
✓You may be able to challenge service charges at a tribunal, and the Housing Ombudsman can look at complaints from shared owners about their landlords
How shared ownership works
When you buy a home through shared ownership, you buy a share between 10% and 75% of the home's full market value. You pay rent to the landlord for the share they own, and you usually pay monthly ground rent and service charges, for example towards the maintenance of communal areas. You can take out a mortgage to buy your share or pay for it with savings. The share you can buy is usually between 25% and 75%, and you can buy a 10% share on some homes. All shared ownership homes, houses and flats, are leasehold properties.
Which rules apply to you depends on your lease. Some older leases only allow you to buy shares of 25% or more, and some newer leases allow shares of 5% or more. Before you buy, ask the landlord for the key information document to check what share amounts you will be able to buy in the future.
There is a different way to buy a share of a home that you already rent, through Right to Shared Ownership. Our Right to Buy guide covers buying your council or housing association home outright.
The true costs of shared ownership
Read the key information document about the home to check the costs, which the landlord gives you a copy of before you reserve your home.
Rent to the landlord
For a new-build shared ownership home the rent limit is 3% of the value of the share the landlord owns, and most landlords charge 2.75%. On a home valued at £400,000 where you own 40%, the landlord owns £240,000, so the rent for the first year at 2.75% is £6,600, or £550 a month. For resale homes, the starting rent is set at the same level as the previous shared owner was paying.
Rent reviews
The landlord reviews your rent at the times set out in your lease, usually once a year. Your rent may go up when it is reviewed, but it will not go down. If you signed your lease before 12 October 2023, the most your rent can go up by is the percentage increase in the Retail Prices Index (RPI) for the last 12 months plus 0.5%. If you signed your lease on or after 12 October 2023, your lease says whether the limit is RPI plus up to 0.5% or the Consumer Prices Index (CPI) plus 1%.
Service charge and other monthly charges
You usually need to pay a monthly service charge, which covers the cost of cleaning and maintaining communal areas, such as communal gardens or the external windows of a block of flats. For some homes you also pay an estate charge, a fee to the landlord for their administration costs, or into a repairs reserve fund. You will not usually be able to get back any money you pay into a reserve fund.
Reservation fee and deposit
You usually need to pay a reservation fee of up to £500, which is taken off the final amount you pay on completion day. If you do not buy the home, you will usually not get the fee back. You also pay a deposit, usually between 5% and 10% of the share you are buying, when you exchange contracts.
Buying costs and buildings insurance
When you buy your home you need to pay your solicitors' fees, your monthly mortgage repayments, rent to the landlord and any monthly charges, and you may also need to pay stamp duty. Once you own the home, you need to pay buildings insurance. Your landlord will usually be responsible for insurance of the building, not the contents, and this will be part of your service charge.
You may lose your home and the money you put into it if you do not pay your rent or you break the terms of your lease.
Staircasing, buying more of your home
Staircasing means buying more shares in your home in the future. If you buy more shares, you pay less rent, because the amount of rent you pay is based on the landlord's share. The rules for shares of 5% or more are different from the rules for shares of 1%.
Feature
Shares of 5% or more
Shares of 1%
When you can buy
Usually at any time, though for some homes you might need to wait after you buy
One share each year for the first 15 years you own the home, if you bought on or after 1 April 2021 and it applies to your lease
How the price is set
Based on how much your home is worth when you want to buy the share
Based on the original price of your home, increased or decreased in line with the House Price Index (HPI)
Valuation
You pay for a valuation by a RICS-registered surveyor, and your landlord tells you whether they arrange it or you do
Your landlord gives you an HPI valuation at least once a year or when you ask, and whoever asks for a RICS valuation instead pays for it
Administration fee
The landlord may charge a fee each time, set by the landlord, from around £150 to around £500
The landlord does not charge an administration fee
You cannot buy shares of 2%, 3% or 4%, and you cannot roll over unused options to buy 1% shares to future years. If you decide to buy more shares of 5% or more, you must buy them within 3 months of the valuation date or the home will need to be revalued. For most shared ownership homes, the maximum share you can own is 100%. In some places, called designated protected areas, you may only be able to buy a share of up to 80%, and in an Older Persons Shared Ownership (OPSO) home the maximum is 75%.
If you have made home improvements that affect the value of your home, the valuation must show the current market value and the unimproved value. If you had your landlord's written permission for the improvements, the price of additional shares is based on the unimproved value. If you did not get your landlord's written permission, the price is based on the current market value, which is likely to be higher. If you need legal advice when you buy a share, you must pay your own legal fees, and the landlord must pay their own.
Selling your shared ownership property
You can sell your shared ownership home at any time. If you own 100% of your home, you can usually sell it on the open market, for example through an estate agent. If you do not own 100%, you must tell your landlord when you want to sell, which gives the landlord the opportunity to find a buyer for your share.
1
Tell your landlord
When you give the landlord notice that you want to sell, the landlord has a nomination period of 4, 8 or 12 weeks, depending on the lease, to find a buyer.
2
Get a RICS valuation
You must get a valuation by a surveyor who is registered with the Royal Institution of Chartered Surveyors (RICS), and the sale price will be based on it. Either you or your landlord arranges the valuation, so ask your landlord what their policy is, and you still pay for it.
3
The landlord finds a buyer, or does not
If the landlord finds a buyer during the nomination period, the sale price will be no more than the current market value of your share. The landlord may offer to buy back your share, but only in exceptional circumstances and if they have the funds. If the landlord does not find a buyer within the nomination period, you can sell your share yourself on the open market.
4
Costs and legal advice
The landlord may charge you a fee when you sell your home. You are responsible for seeking legal advice when you sell, and you pay your legal fees.
The landlord's nomination period does not apply in some circumstances, including if you or someone else on the lease dies or if the court has asked you to transfer your ownership. You cannot sell on the open market if your home has a designated protected area mandatory buyback lease; the landlord will either buy the home or arrange for someone else to buy it.
Service charge disputes
If you pay a service charge, you have the right to ask for a summary showing how the charge is worked out and what it is spent on, and to see any paperwork supporting the summary, such as receipts. Your landlord must give you this information, and it is a criminal offence if they do not.
✓Yes: You have the right to be consulted about charges for running or maintaining the building if you have to pay more than £250 for planned work, or £100 per year for work and services lasting more than 12 months
✓Yes: Costs count towards a service charge only to the extent that they are reasonably incurred, and works or services count only if they are of a reasonable standard (Landlord and Tenant Act 1985, section 19)
✓Yes: You may be able to apply to a tribunal if you pay a charge and you think it is unreasonable, think the standard of work it relates to is unsatisfactory, or do not think you should be paying it at all
There is a limit on how much you have to pay if you have not been consulted properly.
You cannot apply to the tribunal if:
✗No: you have agreed to pay the charge
✗No: the dispute is already being dealt with, for example by the court
✗No: you pay a fixed charge
You might be able to negotiate a settlement using mediation, which is confidential and usually quicker and cheaper than going to court. Your landlord can take you to court if you stop paying a charge you are responsible for.
If you live in a leasehold flat and are unhappy with the way your building is run, you may be able to apply to a tribunal to ask them to appoint a new manager, or take over management responsibilities through your Right to Manage. You can only apply to the tribunal if you have sent the landlord a Section 22 notice.
Repairs and maintenance
You will need to pay for repairs and maintenance no matter what share you own. Some costs might be covered by the building warranty, or by the landlord if your home has an initial repair period.
You can paint, decorate and refurbish your home, and your landlord is not responsible for this
You might need written permission from your landlord to make structural changes
The building warranty will usually cover the cost of structural repairs in the first 10 or 12 years for new-build homes
For flats, the building owner (usually the landlord) arranges external and structural repairs, and the cost is divided between you and the other flat owners if the reserve fund does not cover it
You need to have your boiler serviced every year by an engineer on the Gas Safe Register
If you bought a shared ownership home in 2021, your lease might have an initial repair period. It usually lasts for 10 years and only applies if you own less than a 100% share of your home, and you will still need to pay the service charge. During the period, the landlord is responsible for the cost of essential repairs to the outside of the building and essential structural repairs to walls, floors, ceiling and stairs inside your home. You can also claim up to £500 a year from the landlord for repairing, replacing (if faulty) and maintaining fixtures and fittings that supply water, gas or electricity, or heat your home. After the period ends, all repairs are your responsibility.
You must tell the landlord that the repairs are needed, and the landlord decides if they are essential and has the right to inspect. You arrange the repairs yourself and claim a repairs allowance, and you must use a Trustmark-approved tradesperson or professionals approved by your landlord. If the landlord rejects your claim, they must tell you why in writing within 7 days of receiving the information that supports your claim.
Lease length and extension
If the remaining lease on your home is too short, it may become difficult to sell or remortgage your home, and this can affect the value of your home. You need your landlord's permission to extend your lease, so check with your landlord before you buy what rules they have for shared owners who want to do this and how much you will have to pay. When the remaining lease drops below 80 years, it can be much more expensive to extend.
Our leasehold guide covers the wider rights and costs that come with a lease.
Renting out your shared ownership home
You can normally rent out (sublet) a room in the home, but you must live there at the same time. You cannot sublet your entire home unless you own a 100% share or you have your landlord's permission, which your landlord will usually only give in exceptional circumstances. Our Renters' Rights Act 2025 guide covers the wider changes to private renting in England.
What to do if things go wrong
Complain to your landlord first, then refer the complaint to the Housing Ombudsman if you are unhappy with how it was handled
The Housing Ombudsman resolves disputes involving the tenants, shared owners and leaseholders of its member landlords, and all social landlords must be members
Tenants, shared owners and leaseholders do not have to pay to use the Housing Ombudsman Service
Service charge dispute: apply to a tribunal, try mediation, or get free advice from the Leasehold Advisory Service
Free, impartial advice about money, buying a home and taking out a mortgage is available from MoneyHelper
Wales, Scotland and Northern Ireland
There are different rules on shared ownership in Northern Ireland, Scotland and Wales. This guide covers England.
Staircasing means buying more shares in your home in the future, and if you buy more shares you pay less rent. You can usually buy additional shares of 5% or more at any time. The cost of a new share depends on how much your home is worth when you want to buy the share. If you bought your home on or after 1 April 2021, you may be able to buy a 1% share each year for the first 15 years.
Can I sell my shared ownership property?
Yes, you can sell your shared ownership home at any time. If you do not own 100%, you must tell your landlord when you want to sell, and the landlord then has a nomination period of 4, 8 or 12 weeks, depending on the lease, to find a buyer. If the landlord does not find a buyer within the nomination period, you can sell your share yourself on the open market.
Can I challenge my service charge?
You may be able to apply to a tribunal if you pay a charge and you think it is unreasonable, think the standard of work it relates to is unsatisfactory, or do not think you should be paying it at all. You cannot apply to the tribunal if you have agreed to pay the charge, the dispute is already being dealt with, for example by the court, or you pay a fixed charge. You also have the right to ask for a summary showing how the charge is worked out and what it is spent on.
Who pays for repairs in shared ownership?
You will need to pay for repairs and maintenance no matter what share you own. Some costs might be covered by the building warranty, or by the landlord if your home has an initial repair period.
What happens if I can't keep up with shared ownership costs?
You may lose your home and the money you put into it if you do not pay your rent or you break the terms of your lease. Your landlord can take you to court if you stop paying a charge you are responsible for. You can get free, impartial advice from MoneyHelper, including advice about money, buying a home and taking out a mortgage.
Know Your Rights UK. "Shared Ownership Rights UK: Staircasing, Lease Issues, Costs." Know Your Rights UK, https://www.knowyourrightsuk.com/housing/shared-ownership