# Shared ownership in England: how buying a share and paying rent works > Shared ownership lets a buyer purchase part of a home and pay rent on the rest. This guide explains the share sizes, income limits, costs, rent… - URL: https://centiview.com/uk-money/shared-ownership-england-how-it-works - Published: 2026-10-14T14:36:00.000Z - Figures checked: 2026-10-14 - Edited by David A - Topic: Property & Renting (UK) - Publisher: Centiview (Persie Ltd, London) - General information only, not financial advice Shared ownership lets a buyer purchase part of a home and pay rent on the rest. This guide explains the share sizes, income limits, costs, rent increases, buying more shares and selling, using GOV.UK pages checked on 14 October 2026. ## What shared ownership is With shared ownership, a person buys a share of a home and pays rent to the landlord on the share they do not own. The share can be bought with a mortgage, savings or both. The scheme is meant for people who cannot afford all of the deposit and mortgage payments on a home that meets their needs. Eligible homes include new-build homes and some existing homes sold through resale schemes. This guide describes the scheme as GOV.UK sets it out for England. Scotland, Wales and Northern Ireland have their own schemes and rules, which are not covered here. ## Key figures > **Key numbers** Share bought: 10% to 75% of the full market value, usually 25% to 75%. Deposit: usually 5% to 10% of the share being bought. Household income: £80,000 a year or less, or £90,000 or less in London. New-build rent: up to 3% a year of the value of the landlord's share, and most landlords charge 2.75%. Reservation fee: usually up to £500. Figures checked on 14 October 2026. ## Who can apply On top of the income limit, GOV.UK says a person must fit one of a set of situations, such as being a first-time buyer, a former owner who can no longer afford to buy, or someone forming a new household after a breakup. Some homes ask for a local connection through living or working in the area. A person who already owns a home needs a sale agreed, and that sale must complete on or before the shared ownership purchase. There are separate routes for people aged 55 or over (Older Persons Shared Ownership) and for people with a long-term disability (HOLD). Serving armed forces members get priority when several households want the same home. ## Costs besides the deposit and rent - Legal fees, which the buyer pays, and possibly Stamp Duty Land Tax. - A monthly service charge for things like cleaning and maintaining shared areas, and for some homes an estate charge and a management fee. - Possibly a repairs reserve fund, usually for flats, which is generally not refundable if the owner moves. - Buildings insurance, once the home is owned. GOV.UK also notes that when the remaining lease falls below 80 years, extending it can become much more expensive. ## How the rent changes Rent is reviewed at the times set out in the lease, usually once a year. It can go up but not down. For leases signed before 12 October 2023, the maximum rise is the change in the Retail Prices Index (RPI) over the last 12 months plus 0.5%. For leases signed on or after that date, the lease sets the cap as either RPI plus up to 0.5% or the Consumer Prices Index (CPI) plus 1%. The lease is the place to check which applies. ## Buying more shares Buying more shares is called staircasing. Because rent is based on the landlord's remaining share, buying more shares lowers the rent. Shares are usually 10% or more at a time, though older leases may set 25% and newer ones 5%. For people who bought on or after 1 April 2021, GOV.UK says a 1% share can be bought each year for the first 15 years. For shares of 5% or more, the landlord's administration fee can vary from around £150 to around £500, the buyer pays for a valuation, and the purchase must happen within 3 months of the valuation date. ## Selling When selling, the landlord has a set period, 4, 8 or 12 weeks depending on the lease, to find a buyer. If they do not, the owner can sell on the open market. The landlord may charge a fee, and the owner pays for a valuation and their own legal costs. ## Who this guide applies to, and who it does not > **Who this affects** People thinking about buying or already owning a shared ownership home in England. It does not cover Right to Shared Ownership, or the schemes in Scotland, Wales and Northern Ireland. ## Check before you act Rules, limits and rents change, and each lease is different. It can be worth confirming the details on the official pages linked below and in the lease itself. Free, impartial help is available from MoneyHelper and Citizens Advice. ### Sources - [GOV.UK, Shared ownership scheme](https://www.gov.uk/shared-ownership-scheme) - [GOV.UK, Shared ownership: who can apply](https://www.gov.uk/shared-ownership-scheme/who-can-apply) - [GOV.UK, Shared ownership: costs](https://www.gov.uk/shared-ownership-scheme/costs) - [GOV.UK, Shared ownership: paying rent](https://www.gov.uk/shared-ownership-scheme/paying-rent) - [GOV.UK, Shared ownership: buying more shares (staircasing)](https://www.gov.uk/shared-ownership-scheme/buying-more-shares-staircasing) - [GOV.UK, Shared ownership: selling your home](https://www.gov.uk/shared-ownership-scheme/selling-your-home)