If you're thinking about Shared Ownership, you might have heard that the rules changed recently. But what do those changes actually mean for buyers?
In this blog, we’ll break down the key changes to Shared Ownership leases in simple, plain English — so you know what to expect before you buy.
Quick Recap: What Is Shared Ownership?
Shared Ownership lets you buy part of a property and rent the rest. It's mainly aimed at first-time buyers or people who can’t afford to buy outright.
You typically:
Buy a share (from 10% to 75%)
Pay rent on the rest to a housing association
Increase your share over time through "staircasing"
Now, let’s look at what’s new…
When Did the Changes Happen?
These changes apply to homes built under the Affordable Homes Programme 2021–2026 — mainly new builds delivered from April 2021 onwards.
Older Shared Ownership homes are usually still under the previous lease terms.
What's Changed in the New Shared Ownership Model?
Here are the main changes, explained in plain terms:
1. Buy a Smaller Initial Share (Now from 10%)
Old rule: You had to buy at least 25% of the home.
New rule: You can now start with just 10%.
This makes Shared Ownership more affordable upfront, especially for buyers with smaller deposits or incomes.
2. Cheaper Staircasing — Buy More in 1% Chunks
Old rule: You could only buy more in big jumps (usually 10%+), which meant bigger fees and larger mortgage steps.
New rule: You can now buy as little as 1% at a time, for the first 15 years.
This makes it easier to gradually increase your ownership, even if you can only afford small steps.
And the best part? These 1% shares:
Come with no valuation fee
Have a set price, based on an annual formula (not market value)
3. Landlord Must Pay for Repairs (for 10 Years)
Old rule: You paid for all repairs and maintenance, even though you only owned part of the property.
New rule: The landlord must contribute up to £500 per year for repairs during the first 10 years of the lease.
This is called the 10-year repair-free period, and it helps make Shared Ownership fairer and more affordable.
If your repair costs go over £500 in one year, you cover the rest — but if you don’t use all £500, it can roll over for one year.
4. Easier Lease Terms
The new leases have been simplified and made more consumer-friendly:
Shorter, clearer language
Easier to understand your rights
More transparency on costs and responsibilities
The goal is to reduce confusion and help buyers feel more confident in what they’re signing up for.
5. Easier to Sell Your Share
Old rule: If you wanted to sell, the housing association had 8 weeks to find a buyer.
New rule: That window is reduced to 4 weeks — after that, you can market the property yourself.
This makes it quicker and easier to sell, especially if the housing association can't find a buyer right away.
A Few Things That Haven’t Changed
You’re still buying a leasehold property (not freehold).
You’ll still need to pay rent on the part you don’t own.
You may still pay service charges (especially for flats).
Shared Ownership is still mainly run through housing associations.
What Does It All Mean for You?
These changes make Shared Ownership:
More flexible
More affordable
Fairer for buyers
It’s especially helpful for young people, key workers, and those with lower incomes who want a realistic path to homeownership — without needing a huge deposit.
Before You Buy...
Always:
Get legal advice from a solicitor familiar with Shared Ownership.
Read your lease carefully — especially the repair and staircasing rules.
Budget for mortgage, rent, service charges, and any shared costs.
Final Thoughts
Shared Ownership isn’t perfect, but the new lease model is a big step forward. It gives more people a chance to buy a home — on fairer, clearer terms.
If you're thinking about buying a Shared Ownership property under the new scheme, these changes could make all the difference.
If you’re buying or selling property and would like a no obligation conveyancing quote please call 01253 629300.