Shared ownership / shared equity

Search shared ownership schemes

shared ownershipThere are many different shared ownership schemes designed to assist the home-buyer to buy their new home. Some schemes are private offered by the developer, other schemes are offered via housing associations, which are available to eligible house-hunters who may be required to register with the appropriate association, whereas the Government via local authorities offers various options and assistance.
Use this search to find shared ownership properties and schemes in your chosen area. Developments participating with these schemes can be found by searching via the shared ownership search box found at the top of this page.
The search results will be refined to only include shared ownership schemes. You may wish to search standard developments in your area for availability and prices also.

It is recommended you contact the individual shared ownership or shared equity scheme to ask whether you need to register or are eligible.

As all schemes vary widely, the price range provided is only there as a guide and you should contact the scheme directly to ask for details of the scheme.

Generally speaking shared ownership are schemes offered by local authorities or housing associations whereas shared equity schemes are offered by new home developers. The shared equity schemes are likely to be open to a wider group of people.

Only newly built shared ownership schemes are included in this website. You will need other references to search the wider shared ownership market.

New homes shared ownership & shared equity housing

How do shared ownership and shared equity schemes work?

Through shared ownership you buy a share of the property and pay a rent, or possibly interest, on the remaining share you do not own.
Gradually you may buy further shares and eventually own your home outright.

Through shared equity you buy your home and are given an interest free loan for up to 30% of the value of the property. This loan is repayable up to 10 years later the amount due will be based on the current value of the property when the loan is repaid.

Further details of the HomeBuy schemes can be found below. However, for the purpose of your new home search, new build developers are included within the search results if they offer a scheme. Please contact the relevant builder for their details.
There are various HomeBuy schemes:

HomeBuy Direct

Homebuy direct is a scheme that co-funded by the developer and the government. The scheme which was launched in 2008, gives buyers the opportunity to take an equity loan of up to 30% of the purchase price of the property. Dependant on developer this may be repayable between 5 & 10 years after purchase. The scheme is potentially available to households with an annual income of less than £60,000 who would not be able to find a suitable property on the open market.

  

New Build HomeBuy

Purchasers will buy a minimum initial purchase of 25% of a newly-built home. A housing provider will own the remainder. The provider will be able to levy a charge of up to 3.0% on its share. A lower target average for the charge will be set at 2.75%.
Purchasers may buy further shares in their home when they can afford to do so - a process known as “staircasing”.
The First Time Buyers Initiative - using public sector land in an innovative way to provide affordable housing - will be a form of New Build HomeBuy. English Partnerships is currently developing the scheme and further details can be found on: http://www.englishpartnerships.co.uk
There will be flexibility within the HomeBuy framework for providers to offer schemes that meet the needs of people with long-term disabilities. This will include the option for people to purchase homes on the open market that are suitable for them, on a shared ownership basis.

Social HomeBuy

This scheme allows tenants of local councils and housing associations to buy a share in their current home at a discount.

Questions and answers

What is a housing association?
They are non-profit making organisations who provide and manage homes for rent and sale for people in housing need who cannot afford to rent privately or buy. Most housing associations provide housing with the help of public money given by the Housing Corporation or a local authority; in some cases, the association may provide housing using its own money.

Housing organisations registered with the Housing Corporation are legally known as registered social landlords (RSL's).

Where does the Housing Corporation fit in?
The Housing Corporation was set up by Parliament in 1964. Its job is to fund homes built by housing associations from money it gets from central government ( known as a Grant). It also makes sure that the money is well spent and provides good quality homes and services for residents.

Housing associations must be registered with the Corporation before it can give them public money. Once registered, housing associations are monitored and regulated by Corporation staff to help maintain a good standard of management of their property and finances.

Who can buy through the shared ownership scheme?
The scheme is intended for people who cannot afford to buy a suitable home in any other way. They must be unable to afford outright purchase. Priority may be given to existing public sector tenants or those on local authority or housing associations' waiting lists.

Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier.

You are advised to ask your legal adviser as well as the housing association if there are terms you do not understand.

Can I buy a shared ownership home with someone else?
Up to four people can become joint owners but all joint applicants must individually and jointly meet the eligibility criteria. Ask your solicitor/licensed conveyancer to advise you.

What kind of property can be bought through shared ownership?
Shared ownership homes may be new or renovated flats or houses which are sold through housing associations. Prices vary according to location but are expected to be within the means of those people who cannot afford the prices of properties available for sale in the open market.

How does shared ownership work?
The scheme allows you to purchase a share of a property usually from a housing association. The share you purchase is funded by a mortgage which you will need to arrange with a bank or building society. The remaining share you do not own is rented from the housing association.

The size of the share to be purchased will depend on your income and savings. Normally applicants buy a 50% share but you may purchase a smaller or larger share (to start with, you can buy as little as 25% or as much as 75%). The higher the share you purchase the less rent you will have to pay. You will also have to pay a service charge when you buy a flat. Later on, sometimes after 12 months, if you wish to and can afford to do so, you can buy further shares until you own the property outright.

Remember that house prices can go up or down. This means that sometimes you might pay more for buying additional shares or have to sell at a price less than you originally paid.

When you purchase through shared ownership, the housing association will grant you a lease which sets out your rights and responsibilities.

What does the shared ownership lease entitle me to?
Whether you buy a house or flat under shared ownership terms, the housing association will grant you a lease usually for 99 years. It will entitle you to live in your home as an owner-occupier. It will also entitle you to buy further shares in the property and sets out how you can do this. It also states that you can sell your property.

Other points covered in the lease set out your responsibility for repair and payment of rent and service charge. Although you have not bought the property outright, you will have the normal rights and responsibilities of a full owner-occupier.