Affordable Homes Schemes and Shared Ownership.

Buying a home can be difficult where mortgage payments appear affordable, but saving a large deposit is not. Affordable home ownership schemes may help by reducing the required deposit, offering a discounted purchase price, or allowing you to buy only part of a property. Each part of the UK operates different schemes and eligibility rules. This guide mainly covers England, although some mortgage products and forms of Shared Ownership are available more widely. Before committing to any scheme, obtain independent mortgage advice and ask a conveyancing solicitor to explain the legal documents, restrictions and long-term costs.

Which Schemes Are Currently Available?

The principal options may include:

• Shared Ownership;
• First Homes;
• Mortgages requiring a 5% deposit;
• Rent to Buy;
• Older Persons Shared Ownership;
• Home Ownership for People with Long-Term Disabilities;
• Right to Shared Ownership;
• Right to Buy or Right to Acquire; and
• Separate schemes operating in Wales, Scotland and Northern Ireland.

The former Help to Buy: Equity Loan and NewBuy schemes are no longer available to new applicants in England.

Shared Ownership

Shared Ownership allows you to purchase a percentage of a home and pay rent to a housing association or other provider on the share you do not own. Under current schemes, the initial share is typically between 10% and 75% of theproperty'ss full market value. You will usually fund your share using a mortgage and deposit. For example, if a property is worth £300,000 and you purchase a 25% share:

• Your share will cost £75,000;
• You may need a mortgage for most of that amount;
• You will provide a deposit based on the share being purchased;
• You will pay rent on the remaining £225,000 share; and
• You may also pay service charges, estate charges and other leasehold costs.

The deposit is usually calculated as a percentage of the share you are buying rather than the full market value. This can make the initial deposit considerably lower than for an ordinary purchase.

Who Can Apply for Shared Ownership?

In England, you will generally need to:

• Have a gross household income of £80,000 a year or less, or £90,000 or less in London;
• Be unable to afford a suitable home on the open market;
• Be a first-time buyer, a former homeowner who cannot currently afford to buy, or an existing shared owner who needs to move; and
• Use the property as your main home.

If you currently own a property, you will normally need to have accepted an offer for its sale and complete that sale by the time you complete the Shared Ownership purchase. Providers will also assess whether the mortgage, rent, service charges and other costs are affordable.

Monthly Shared Ownership Costs

Shared Ownership does not mean that you pay only the mortgage. Your regular costs may include:

• Mortgage payments on your share;
• Rent on theprovider'ss share;
• Service charges;
• Estate or management charges;
• Buildings insurance contributions;
• Reserve or sinking-fund payments;
• Ground rent under some older leases; and
• Repair and maintenance costs.

Service charges can increase and may be substantial, particularly for flats, developments with lifts or communal facilities and buildings requiring major work. Ask for details of current charges, anticipated increases, planned major works and any reserve fund before proceeding.

Repairs and Maintenance

Shared owners are usually responsible for maintaining and repairing the inside of their home, even though they own only a percentage of it. Responsibility for structural work and communal areas will depend on the lease. The cost may be recovered through the service charge. Some newer Shared Ownership leases include an initial repair period during which the landlord is responsible for specified structural and external repairs and may contribute towards certain internal repairs. The availability and remaining length of this period must be checked for the particular property.

Buying Additional Shares

Buying a larger share is known as staircasing. Most shared owners can purchase additional shares over time, potentially reaching 100% ownership. Some newer leases may allow annual purchases of 1% of the shares for a limited period, with a simplified valuation process. The price of additional shares is normally based on theproperty'ss market value at the time of staircasing, not its value when you first bought it. You may need to pay:

• A valuation fee;
• Mortgage fees;
• Thprovider's’s administration charges; and
• Stamp Duty Land Tax where applicable.

If the property has increased in value, the additional shares will cost more. If it has fallen in value, it may cost less. Some rural or protected-area properties restrict staircasing or require the provider to buy the property back when it is sold.

Selling a Shared Ownership Property

If you do not own 100%, the lease will normally give the housing provider an initial period in which to nominate or find another eligible purchaser. The property will usually need to be valued by an independent surveyor who meets theprovider'ss requirements. You may also have to pay the provider a nomination, marketing or administration fee. If the provider does not find a buyer during the nomination period, you may usually market the share more widely, subject to the lease. Potential issues include:

• The remaining length of the lease;
• Service-charge levels;
• Cladding or building-safety concerns;
• Restrictions on eligible purchasers;
• Theprovider'ss resale procedures;
• Valuation disagreements; and
• Difficulty finding a mortgage lender for the buyer.

Owning 100% does not always remove every restriction, particularly for flats, rural properties or homes in designated protected areas.

First Homes

First Homes is an England-only scheme offering qualifying first-time buyers selected properties at a discount of at least 30% from their market value. Local authorities can require discounts of 40% or 50% in some areas. The same percentage discount remains attached to the property when it is resold. To qualify, buyers must generally:

• Be aged 18 or over;
• Be first-time buyers;
• Have a household income no higher than £80,000, or £90,000 in London;
• Obtain a mortgage covering at least 50% of the discounted purchase price; and
• Use the property as their only or main home.

Local councils may impose additional eligibility rules, such as giving priority to residents, key workers or people with a local family or employment connection. Availability is limited because only properties specifically designated as First Homes can be purchased through the scheme.

Selling a First Home

When a First Home is sold, the original percentage discount must generally be passed to another eligible buyer. For example, if the property was originally bought with a 30% discount, it will normally need to be resold at 70% of its current market value. The local authority will usually need to confirm the newbuyer'ss eligibility and approve the transaction. Your solicitor should explain the title restriction, resale conditions and circumstances in which the property might exceptionally be sold on the open market.

Mortgages with a 5% Deposit

Some lenders offer mortgages of up to 95% of the property value, allowing buyers to purchase with a deposit of 5%. The permanent Mortgage Guarantee Scheme, introduced in July 2025, supports participating lenders in offering mortgages at between 91% and 95% loan-to-value. The government guarantee protects the lender against part of its potential loss. It does not:

• Provide the buyer with a deposit;
• Guarantee that an applicant will be approved;
• Protect the buyer from repossession;
• Pay the mortgage if the borrower falls behind; or
• Protect the buyer from negative equity.

Participating lenders apply their own affordability, credit and property criteria. A 95% mortgage may be available to first-time buyers and home movers, depending on the lender and property.

Points to Consider with a 95% Mortgage

A smaller deposit can make buying possible sooner, but it may also mean:

• A higher mortgage rate;
• Higher monthly payments;
• Fewer lenders and products;
• Greater exposure to negative equity;
• More difficulty remortgaging if the property value falls; and
• A larger total amount of interest over the mortgage term.

Compare the cost of a 95% mortgage with products available using a 10% or larger deposit. A relatively small increase in the deposit can sometimes provide access to materially better rates.

Rent to Buy

Rent to Buy is intended to help working households in England save towards a deposit. Homes are generally offered at a discounted rent, commonly up to 80% of the local market rate, for a limited period. The tenant can use the difference to build savings. At the end of the rental period, the tenant may be able to:

• Purchase the property;
• Buy through Shared Ownership;
• Purchase another home; or
• Move into different accommodation.

There is no automatic guarantee that the tenant will be able to buy the rented property. Availability and local eligibility rules vary, and the scheme operates differently in London.

Older Persons Shared Ownership

Older Persons Shared Ownership is available to eligible buyers aged 55 or over. It operates similarly to standard Shared Ownership, but Ownership is capped at 75%. Once the buyer owns 75%, no rent is payable on the remaining 25%. Service charges and other property costs remain payable. Properties may include features or services intended for older residents, and the lease may restrict resale to another person aged 55 or over.

Home Ownership for People with Long-Term Disabilities

The Home Ownership for People with Long-Term Disabilities scheme, commonly called HOLD, is a specialist form of Shared Ownership. It may assist a person with a long-term disability where ordinary Shared Ownership properties do not meet their needs. For example, they may require a ground-floor property, adaptations or a home in a particular location. Under the scheme, an approved provider may purchase a suitable property on the open market and sell a share to the applicant. The standard Shared Ownership eligibility and affordability rules generally apply, and availability is limited.

Right to Shared Ownership

Some eligible tenants living in homes funded through the Affordable Homes Programme 2021 to 2026 may have a Right to Shared Ownership. The scheme may allow a tenant to buy between 10% and 75% of the home they already rent, paying rent on the remaining share. It does not apply to every social or affordable rented property, nor to rented homes funded through the Social and Affordable Homes Programme 2026 to 2036. Tenants should ask their landlord whether their home and tenancy qualify.

Right to Buy and Right to Acquire

Some council tenants may qualify for the Right to Buy, allowing them to purchase their home at a discount. Some housing association tenants may qualify for the Right to Acquire, although the discount and eligibility rules differ. Before proceeding, consider:

• The mortgage payments;
• Service charges;
• Major works planned by the landlord;
• Repair responsibilities;
• Resale restrictions;
• Repayment of some or all of the discount following an early sale; and
• Whether the property is suitable for mortgage lending.

Buying a council or housing-association flat can result in significant bills for roof, lift, cladding, window or structural work.

Property Schemes Outside England

Housing schemes and property taxes differ across the UK. Depending on where the property is located, assistance may include:

• Help to Buy schemes in Wales;
• Shared Ownership in Wales;
• Open Market Shared Equity and New Supply Shared Equity in Scotland;
• Low-cost home ownership schemes administered locally; and
• Co-Ownership in Northern Ireland.

Always use the current government or scheme-provider guidance for the country in which you intend to buy.

Leasehold Issues

: Most Shared Ownership properties are leasehold, including many houses. The lease governs:

• The rent calculation and annual increases;
• Service charges;
• Repair obligations;
• Staircasing;
• Subletting;
• Alterations;
• Keeping pets;
• Resale procedures;
• Mortgage protection provisions; and
• What happens if payments are missed.

A Shared Ownership lease can be forfeited for serious breaches or non-payment. Because the arrangement combines ownership and tenancy features, losing the lease may also mean losing the value of the share purchased.

Check the Total Monthly Cost

Do not compare a Shared Ownership mortgage payment with an ordinary mortgage payment in isolation. Add together:

• The mortgage;
• Rent;
• Service charges;
• Estate charges;
• Insurance contributions;
• Utilities and council tax;
• Maintenance costs; and
• Any anticipated major-works payments.

Ask how the rent and service charges can increase and calculate whether the property would remain affordable if mortgage rates and other charges rose.

Use an Experienced Solicitor

Affordable home ownership transactions are more complicated than ordinary purchases. Your solicitor should review:

• The lease;
• Theprovider'ss key information documents;
• Staircasing and resale rules;
• Rent-review provisions;
• Service charges and planned works;
• Restrictions affecting occupation or subletting;
• The mortgagelender'ss requirements;
• Any discount or equity restrictions; and
• The consequences of falling into arrears.

Use a conveyancer approved by your mortgage lender and experienced in the particular scheme. Do not assume that a solicitor recommended by the developer or housing provider is necessarily the best choice for you.

Obtaining Mortgage Advice

A regulated mortgage adviser can assess affordability and identify lenders willing to provide mortgages on the relevant property and scheme. Ask whether the adviser:

• Deals regularly with Shared Ownership or First Homes;
• Considers products from across the market;
• Charges a fee;
• Receives commission; and
• Has checked the combined mortgage, rent and service-charge cost.

A mortgage offer does not replace the need to decide whether the overall arrangement is affordable for you.

Finding an Affordable Housing Solicitor

Before instructing a firm, confirm that it regularly deals with Shared Ownership, First Homes or the particular affordable housing scheme involved. To find a Conveyancing Solicitor, use the search facility at the top of this page. We recommend contacting several firms to compare their relevant experience, service and fees.