Why Shared Ownership is a fantastic option.

Struggling to buy? Here’s why Shared Ownership is a fantastic option

Buying a home can feel out of reach when house prices keep climbing, and deposits take forever to save. But with Shared Ownership, owning a home is a lot more achievable.  

Instead of buying a property outright, you buy a share and pay rent on the rest. This means a smaller deposit, a lower mortgage, and a chance to get on the property ladder without waiting years. 

Let’s look at why Shared Ownership is so appealing. 

A more affordable way to buy a home 

House prices continue to rise, making buying a home harder for many people. In early 2025, the average UK house price hit £267,200, and it’s predicted to increase by 2.5% by the end of the year. 

Deposits are another challenge, now averaging a whopping £53,000! Saving can take years, and house prices may have gone up again by the time you're close. 

Shared Ownership makes homeownership possible by allowing you to buy a share of a home, usually between 10% and 75%, and you only need a deposit for the share you buy, not the full property price.  

It’s a realistic way to own a home if your household income (combined, not individual earnings) is under £80,000 a year and you can afford the mortgage, rent, and service charges. However, you must not own another property when completing your Shared Ownership purchase. 

A lower mortgage makes buying easier 

With mortgage rates at 4.5% as of March 2025, borrowing for an entire property can be expensive. Many buyers struggle to get approved for a large mortgage, but Shared Ownership makes this easier. 

Since you only take out a mortgage on the shares you buy, your loan amount is smaller. For example, if you buy 50% of a £200,000 home, your mortgage is based on £100,000. With a 5% deposit, you would only need £5,000 instead of saving tens of thousands.  

Of course, there are other costs to consider, like reservation fees, Stamp Duty, solicitors' fees, moving expenses and bills, but Shared Ownership makes getting a home far more affordable than buying outright. 

Shared Ownership can be cheaper than renting  

If you’re currently renting, you’ll know the pain of high monthly payments that don’t get you closer to owning a home.  

However, research from Leeds Building Society shows that Shared Ownership often works out cheaper than renting. Instead of paying your landlord’s mortgage, you’re working towards getting on the property ladder.

Over time, you can increase your ownership through a process called ‘staircasing,’ which usually allows you to buy up to 100% of your home. In some cases, such as Over 55 schemes or homes in designated protection areas, ownership is capped at 75%. 

Another big plus? Many Shared Ownership homes are new builds designed to be energy-efficient, which helps lower energy bills.  

If your home's value goes up, so does the value of your share – which benefits you. But if house prices drop, your share's value will also decrease. 

More stability and long-term security 

One of the best things about Shared Ownership is the stability it offers. Unlike renting, where a landlord can suddenly hike the rent or decide to sell, Shared Ownership gives long-term security.  

Most Shared Ownership leases were traditionally 99 or 125 years, but new changes have extended them to 990 years.  That’s forever in home-owning terms, so you don’t need to worry about lease issues in your lifetime. 

The benefits of the new Shared Ownership model 

To make Shared Ownership more appealing and get more people on the property ladder, the government introduced a new Shared Ownership model in 2021, which applies to homes built under the Affordable Homes Programme from 2021 to 2026.  

It has some big plus points:  

• A 990-year lease for long-term security 

• A 10-year essential repairs allowance (up to £500 per year) for eligible repairs like gas, electric, and water fixtures 

• The ability to staircase, either by 1% per year for the first 15 years with no fees or 5% (previously 10%), making it easier to increase your ownership over time. 

Want to learn more about Shared Ownership? 

If you’re looking to buy a Shared Ownership home in Cheshire, Open Door can help.  

Please speak to our Sales Team to find out which Shared Ownership options are available for the home you're interested in.  

Get in touch today!