Affordable home ownership

Some people can afford part of a home but not all of it. In England, the government helps through shared ownership and the First Homes scheme. Some new homes are also sold at a discount under local planning rules. Scotland, Wales and Northern Ireland have their own schemes.

Shared ownership

With shared ownership, you buy a share of a home and pay rent to a landlord on the rest. The share is between 10% and 75% of the home's full market value. It's usually between 25% and 75%, and some homes allow a 10% share.

Housing associations, councils and other organisations offer these homes. All shared ownership homes, houses and flats alike, are leasehold. Owners usually pay monthly ground rent and service charges as well.

Who can buy a shared ownership home

In England, two things must both be true. The household's income must be £80,000 a year or less, or £90,000 or less in London. The buyer must also be unable to afford all of the deposit and mortgage payments for a home that meets their needs.

At least one more thing must also be true. Examples include being a first-time buyer, or forming a new household after a relationship ends. For some homes, you may have to show that you live or work in the area, or have a connection to it. People aged 55 or over can use the Older Persons Shared Ownership scheme. People with a long-term disability can apply for a scheme called HOLD if other homes do not suit their needs.

Buying more of the home later

Owners can buy more shares in the home over time. This is called staircasing. As the owner's share goes up, the rent goes down. Shares of 10% or more can usually be bought at any time.

For homes bought on or after 1 April 2021, owners may be able to buy 1% a year for the first 15 years. Before you buy, ask the landlord for the home's key information document. It shows which share sizes you can buy later.

First Homes

The First Homes scheme is only available in England. First-time buyers may be able to buy a home for 30% to 50% less than its market value. The home has to be the buyer's only or main home.

Buyers must be 18 or older and able to get a mortgage for at least half the price. Their income must be no more than £80,000 a year before tax, or £90,000 in London. Councils may add local criteria, such as giving key workers priority. Those local criteria apply only for the first 3 months a home is on sale.

Discounted market sale

Discounted market sale is a planning term. Planners in England use the definition in the National Planning Policy Framework. It describes homes sold at a discount of at least 20% below local market value. Who can buy one depends on local incomes and local house prices.

Government guidance calls First Homes a specific kind of discounted market sale housing.

Scotland, Wales and Northern Ireland

In Scotland, the Scottish Government runs the First Homes Fund, two shared equity schemes and a shared ownership scheme.

In Wales, the Help to Buy Wales scheme offers equity mortgages on new-build homes. The Welsh Government says applications must be in by 31 March 2027.

In Northern Ireland, Co-Ownership is a registered housing association. Buyers start with a share of between 50% and 90% of the price, and rent the rest from Co-Ownership.

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