You may have heard of it but aren’t too sure what it means. Here we try to answer the question, ‘What is shared ownership?’

Shared ownership is a way to buy a home if you can’t afford to buy one outright. You buy a share of a property (usually between 10% and 75%) and pay rent on the rest to a housing association or developer. Over time, you can usually buy more shares in the home — this process is called “staircasing.”

Here’s how it generally works:

1. Initial purchase: You buy a percentage of the home — say 25%.
2. Rent: You pay rent on the remaining 75% to the housing association.
3. Mortgage: You typically get a mortgage for your share, and you’ll also need a deposit (usually based on the share you’re buying, not the whole value).
4. Staircasing: You can increase your share over time (e.g., buy another 25%, then 50%, etc.), and your rent decreases accordingly.
5. Full ownership: In many cases, you can eventually own 100% of the property.

It’s designed to make getting on the property ladder more affordable, especially for first-time buyers.

✅ Pros

1. Smaller deposit needed
   You only need a deposit on the share you’re buying (e.g., 10% of 25% of the home), which makes it more accessible than buying outright.
2. Lower monthly costs
   The mortgage + rent is often cheaper than renting privately or repaying a full mortgage.
3. Opportunity to own more later
   You can gradually buy more of the home (“staircasing”) when your finances improve.
4. Step onto the property ladder
   It’s a useful first step toward homeownership if full ownership feels out of reach.
5. Potential for equity growth
   If the property increases in value, the value of your share goes up too.

❌ Cons

1. You still pay rent
   Even though you own a part of the home, you pay rent on the rest — and it can go up over time.
2. Limited control
   There are restrictions on what you can do with the property (e.g., subletting, major renovations), and you usually need the housing association’s permission for changes.
3. Maintenance costs are all yours
   You’re responsible for 100% of the upkeep and repairs — even if you only own part of the home.
4. Selling can be tricky
   You don’t always have full control over the selling process. The housing association might have the right to find a buyer before you can sell it on the open market.
5. Staircasing can be expensive
   Each time you buy more shares, there are costs involved (like valuations, legal fees, and stamp duty).

What is a shared ownership valuation?

A shared ownership valuation is a professional assessment of a property’s current Market Value provided by an RICS (Royal Institution of Chartered Surveyors) Registered Valuer. A valuation is required if the property owner wants to:

🔁 1. Staircase (buy more shares in the property)

If you own, say, 25% of your home and want to buy more (up to 100%), a valuation is needed to figure out how much the new share will cost.

💡 Example: If your home is valued at £200,000, and you want to buy an extra 25%, you’d pay 25% of that value: £50,000.

🏷️ 2. Sell your share

When you want to sell your share in the property (known as an assignment sale), the housing association needs to know the current value to set the price for potential buyers.

🧾 What’s Included in the Valuation?

Conducted by a RICS Registered Valuer, the valuer will inspect your property and then write a compliant report. The report, provided the current Market Value.

📌 Key Things to Know:

• The valuation is usually valid for 3 – 6 months. The time scales may vary between housing associations and you should check this before proceeding. Once it expires, you may be required to get an updated one.
• You (or the housing association) must use an independent RICS Registered Valuer not an estate agent.
• Some housing associations may have a preferred list of valuers, or require approval.

💡 Example Scenario:

Let’s say:

• You bought 40% of a property at a £150,000 valuation.
• Now, a RICS valuer says it’s worth £200,000.
• If you want to staircase to 100%, you’ll pay the remaining 60% of the new market value, which is £120,000 (plus any legal/valuation fees).

If you would like more information on Shared Ownership Valuations, please contact us and we would be happy to help. You can contact us via the form on our website here: Contact Us

Or by calling the office to speak to one of our friendly team: 0330 088 5040 who will be happy to help.