Shared Ownership Myths Debunked: What UK Buyers Get Wrong

Shared Ownership has become an increasingly popular way for people across the UK to get onto the property ladder, particularly those looking to buy a new build home.

Despite this, the scheme is still surrounded by confusion and misinformation. Many potential buyers dismiss Shared Ownership altogether, often based on assumptions that simply aren’t true.

From the idea that you never really own your home to concerns about being unable to sell, these myths can prevent buyers from exploring an option that could be genuinely suitable for their circumstances. In this article, we take a closer look at the most common Shared Ownership myths and explain how the scheme actually works in practice.

Shared Ownership isn’t just for low income buyers or renters. It’s a practical, government-backed way to step onto the property ladder.

By buying a share of a home and gradually increasing ownership through staircasing, many buyers can enjoy the benefits of equity, long term stability and access to modern new build homes without needing a huge deposit upfront.

A Quick Explanation of Shared Ownership

Shared Ownership is a government backed scheme designed to help people who can afford the ongoing cost of homeownership but struggle to raise a full deposit. Instead of buying a property outright, buyers purchase a share of the home. Typically between 25% and 75% and pay rent on the remaining share, which is owned by a housing association.

You take out a mortgage on the share you own and pay rent at a reduced rate on the rest. Over time, you can usually buy additional shares through a process known as staircasing, gradually increasing your level of ownership. Many Shared Ownership homes are new builds, making the scheme particularly attractive to first-time buyers looking for modern, energy efficient properties.

Myth 1: You’ll Never Fully Own the Property

One of the most common misconceptions about Shared Ownership is that you’ll never be able to own the home outright. While this can be true for some properties, it is far from the rule.

In many cases, buyers are able to staircase all the way to 100% ownership. As you buy more shares, the amount of rent you pay reduces and once you reach full ownership, the rent stops altogether. This allows Shared Ownership to act as a long term route to full homeownership rather than a permanent halfway house.

That said, some apartments, particularly in London may have limits on staircasing. This is why it’s always important to check the specific terms of a property before committing.

Myth 2: Shared Ownership Is Basically the Same as Renting

Although Shared Ownership involves paying rent, it is fundamentally different from renting in the private sector. When you rent, your monthly payments go entirely to a landlord and you do not build any equity in the property. With Shared Ownership, part of your monthly outgoings go towards a mortgage on the share you own, which means you are building equity over time.

You also benefit from any increase in the value of your share of the property, something renters do not. In addition, Shared Ownership usually offers more long term security than renting, making it a more stable option for many buyers.

Myth 3: Shared Ownership Is Only for People on Very Low Incomes

Another widespread myth is that Shared Ownership is only available to people on low incomes or those receiving benefits. In reality, the scheme is designed for people who earn too much to qualify for social housing but not enough to buy a home outright.

There are income caps, currently £80,000 per household outside London and £90,000 in London but within those limits, Shared Ownership buyers come from a wide range of backgrounds. Many are professionals, couples combining incomes or families who simply find that house prices have outpaced their ability to save a large deposit.

Myth 4: You Still Need a Large Deposit

For many first-time buyers, saving a deposit is the biggest barrier to buying a home. This is where Shared Ownership can make a significant difference.

Because the deposit is calculated based on the share you are buying rather than the full market value of the property, the upfront cost is usually much lower. This can reduce the time it takes to save enough to buy and make homeownership feel far more achievable, particularly in high demand areas.

Myth 5: Shared Ownership Homes Are Difficult to Sell

Some buyers worry that purchasing a Shared Ownership home will limit their ability to move in the future. While the selling process is slightly different, Shared Ownership properties are not inherently difficult to sell.

Housing associations usually have a nomination period during which they can find a buyer for your share. If they are unable to do so within that time, you are typically free to sell on the open market. In many areas, demand for Shared Ownership homes, especially new builds remains strong.

Myth 6: The Process Is Too Complicated

It’s true that buying a Shared Ownership home involves more steps than buying outright, but that doesn’t mean it’s unreasonably complex. Most buyers are guided through the process by housing associations, mortgage advisers, and solicitors who specialise in Shared Ownership and new build purchases.

With the right support, the experience is generally straightforward and thousands of buyers complete Shared Ownership purchases every year without issue.

Myth 7: Shared Ownership Isn’t Good Value

Some critics argue that Shared Ownership offers poor value once rent and service charges are taken into account. While it’s important to understand all the costs involved, many buyers find that Shared Ownership compares favourably with renting.

Monthly costs are often similar to private rent, but with the added benefit of building equity and having a long-term stake in a property. For buyers who plan to stay in their home for several years, Shared Ownership can represent good value and greater financial stability.

Myth 8: You Can’t Personalise a Shared Ownership Home

Another concern is that Shared Ownership buyers won’t be able to make the property feel like their own. In reality, most housing associations allow buyers to decorate and furnish their homes as they wish.

More significant alterations may require permission, particularly for structural changes, but this is also common with leasehold properties purchased outright.

Why Shared Ownership Works Well for New Build Homes

Shared Ownership is particularly well suited to new build developments. Buyers benefit from modern layouts, energy efficient designs and warranties that can reduce maintenance costs in the early years.

Developers and housing associations often work closely together, which can make the buying process smoother and provide more choice for buyers.

Final Thoughts

Shared Ownership is not a one size fits all solution, but it is often misunderstood. Many of the myths surrounding the scheme don’t stand up to scrutiny, and for the right buyer, Shared Ownership can be a practical and affordable route onto the property ladder.

If buying outright feels out of reach right now, it may be worth exploring what Shared Ownership new build homes are available in your area.

You can browse Shared Ownership properties across the UK on newhomesforsale.co.uk and see whether this option could work for you.