The Right to Shared Ownership scheme allows eligible tenants in England to buy a portion of their rented home while continuing to pay rent on the remaining share. This scheme is designed to help tenants gradually become homeowners, making homeownership more accessible.
In this guide, we will explain how the scheme works, who is eligible, how to buy a share, and other homeownership support options.
What is the Right to Shared Ownership Scheme?
The Right to Shared Ownership scheme enables tenants to:
- Buy a share of their home as a leaseholder.
- Pay rent to the landlord for the remaining share.
- Cover service charges, such as maintenance for communal areas.
This scheme is only available in England and does not apply to Scotland, Wales, or Northern Ireland.
Eligibility for the Right to Shared Ownership Scheme
To qualify for the scheme, you must meet the following requirements:
General Eligibility Criteria
- Your household income must be £80,000 or less per year (or £90,000 or less in London).
- You cannot afford the full deposit and mortgage payments for a home that meets your needs.
- You are renting a home that is eligible for the scheme (check with your landlord).
- You have lived in the home for at least one year.
- You have been a tenant of social or affordable housing for at least three years (not necessarily consecutive or with the same landlord).
- You are not overdue on rent or credit payments.
Additional Requirements
One of the following must also be true:
- You are a first-time buyer.
- You previously owned a home but cannot afford to buy one now.
For full eligibility details, refer to the official application form.
Buying a Share of Your Home
Under the Right to Shared Ownership scheme, you can buy between 10% and 75% of your home’s full market value.
How to Pay for Your Share
You can pay for your share using:
- A mortgage (a deposit of 5-10% of your share’s value is usually required).
- Savings, if you have enough to cover the cost.
If you want to increase your ownership share in the future, you can do so through a process called staircasing. This means buying additional shares over time, which reduces the rent you pay on the remaining portion.
Joint Applications
You can apply for the Right to Shared Ownership jointly with:
- Someone who shares your tenancy.
- Up to three family members, provided they have lived with you for the past 12 months.
Other Affordable Homeownership Options
If you are not eligible for the Right to Shared Ownership scheme or want to explore other options, there are additional affordable homeownership schemes available. These may include:
- Shared Ownership – Allows you to buy a share of a home you do not currently rent.
- First Homes Scheme – Provides discounts on new-build homes for first-time buyers.
- Help to Buy – Offers equity loans to assist with purchasing a home.
The Right to Shared Ownership scheme is an excellent opportunity for eligible tenants in England to gradually transition into homeownership. By purchasing a share of your home, you can reduce your rent costs over time while working towards full ownership. If you meet the criteria, this scheme can provide a more affordable and flexible way to buy a home. Always check with your landlord and review the official guidelines before applying.
FAQ’s
What is the Right to Shared Ownership scheme?
The Right to Shared Ownership scheme allows eligible tenants in England to buy a portion of their rented home while paying rent on the remaining share. This helps tenants gradually become homeowners by purchasing shares over time through a process called staircasing.
Who is eligible for the Right to Shared Ownership scheme?
To be eligible, you must have a household income of £80,000 or less (£90,000 in London), have rented an eligible home for at least one year, and have been a tenant of social or affordable housing for at least three years. You must also be a first-time buyer or unable to afford a home outright.
How much of my home can I buy through the scheme?
You can buy a share between 10% and 75% of your home’s full market value. The remaining portion stays with the landlord, and you will continue to pay rent on it.
How can I pay for my share of the property?
You can pay for your share using a mortgage, which usually requires a 5-10% deposit, or you can use savings if you have enough funds available.
Can I increase my ownership share over time?
Yes, you can buy additional shares through a process called staircasing. This reduces the amount of rent you pay to the landlord.
Can I apply jointly with someone else?
Yes, you can apply jointly with someone who shares your tenancy or with up to three family members who have lived with you for at least 12 months.
Does this scheme apply to all parts of the UK?
No, the Right to Shared Ownership scheme is only available in England. It does not apply in Scotland, Wales, or Northern Ireland.
What happens if I want to sell my share in the future?
If you decide to sell, the housing provider usually has the first right to buy it back. If they choose not to, you can sell your share on the open market.