Part Ownership Scheme: The Complete UK Guide to Shared Ownership & How It Works in 2025

Why Shared Ownership Is More Relevant Than Ever in 2025

With house prices still outpacing wage growth, especially in major cities, shared ownership is offering a realistic way onto the property ladder. As one of the core first home schemes supported by the UK government, it gives aspiring homeowners a path forward — even with limited deposits or lower incomes. Whether you're exploring the part ownership scheme for the first time or comparing it to alternatives like Right to Buy or the Help to Buy scheme, this guide unpacks everything you need to know.

What Is a Shared Ownership Scheme?

The shared ownership (also called part ownership) scheme allows buyers to purchase a share of a property — typically between 25% and 75% — and pay rent on the remaining portion. The rest of the property is owned by a housing association, and you have the option to gradually increase your share through a process called staircasing.

Unlike Help to Buy, which offers an equity loan, shared ownership houses and shared ownership flats give you legal ownership of a portion of the property — making it a hybrid between renting and buying.

Am I Eligible for a Part Ownership Scheme in the UK?

Eligibility generally includes:

• A household income below £80,000 (or £90,000 in London)
  
  

• You're a first-time buyer or do not currently own a home
  
  

• You cannot afford a suitable property on the open market
  
  

Housing associations may prioritise key workers, disabled applicants, and local residents.

How Do Part Ownership Schemes Work?

Here's a simplified example using the part ownership scheme calculator:

• Property value: £200,000
  
  

• You buy: 45% share = £90,000
  
  

• Deposit (5% of your share): £4,500
  
  

• Mortgage on your share: £85,500
  
  

• Rent (on 55%): Typically 2.75% of the remaining value per year
  
  

💡 What is the 45% rule for shared ownership?
There’s no official "45% rule", but many buyers aim for a 40–50% initial share, which balances affordability with future staircasing potential.

Step-by-Step: The Shared Ownership Buying Process

1. Check your affordability using online calculators
   
   

2. Search “shared ownership houses near me” or use Zoopla Shared Ownership
   
   

3. Contact a housing association or platform like Share to Buy
   
   

4. Reserve the property and pay the holding fee
   
   

5. Apply for a mortgage
   
   

6. Instruct a solicitor
   
   

7. Exchange contracts
   
   

8. Complete and get your keys
   
   

Types of Shared Ownership Homes

You’ll find both:

• New-build shared ownership apartments and houses
  
  

• Resale properties from previous shared owners
  
  

Locations include both urban and suburban areas, with hotspots in London, Manchester, and Birmingham.

Part Ownership Scheme: Pros and Cons

Pros:

• Lower deposit requirements
  
  

• Affordable entry into homeownership
  
  

• Opportunity to own more over time (staircasing)
  
  

Cons:

• You still pay rent and service charges
  
  

• Leasehold restrictions may apply
  
  

• Selling can take longer due to association involvement
  
  

As Martin Lewis shared ownership advice highlights — understand all the long-term costs before committing.

How Much Deposit Do I Need for Part Ownership?

Typically, you’ll need 5%–10% of the share you’re buying, not the full property value. This is what makes schemes to help first-time buyers so attractive.

Shared Ownership vs Help to Buy vs Right to Buy

• Help to Buy: Equity loan, now phased out in most areas
  
  

• Right to Buy: For council tenants buying their current homes
  
  

• Shared Ownership: Lower deposits, staircasing potential
  
  

Choosing the right option depends on your current living situation and income.

Selling a Shared Ownership Home

• Notify your housing association first
  
  

• They have a nomination period to find a buyer
  
  

• If not sold, you can sell your share on the open market
  
  

Be aware of valuation costs and legal fees.

What’s New for Shared Ownership in 2025?

• Minimum 10-year repair support for new builds
  
  

• New model allows staircasing in 1% increments
  
  

• Greater flexibility for resale and fewer leasehold charges
  
  

Part Ownership Scheme FAQS

Is part ownership of property a good idea?
It can be — especially for those priced out of full ownership. However, long-term costs and restrictions should be weighed carefully.

How do part ownership schemes work?
You buy a share and pay rent on the rest, with the option to increase your share later.

What is the 45% rule for shared ownership?
This refers to a common entry point, but there is no formal rule. Most schemes offer flexible share levels.

How much deposit do I need for part ownership?
Usually just 5%–10% of the portion you’re buying.

Where to Start Your Journey

If you’re searching for part ownership scheme houses for sale, platforms like Zoopla Shared Ownership and Share to Buy are ideal places to start. Use filters like location, deposit size, and bedroom count to find your ideal match.