Shared ownership is proving a great way for many people to get on the property ladder.

And with an estimated 250,000 people now using the Government-backed scheme, rising numbers are expected to now attempt to buy a home this way.

One of the country’s leading property and mortgage experts, today reveals how he’s receiving soaring numbers of enquiries from applicants looking to utilise shared ownership.

Explaining what shared ownership is and how be utilise it, mortgage expert Sam Fox, from the UK Mortgage Centre, said: “Shared Ownership is a government-backed scheme designed to help people get on the property ladder when buying a home outright is financially difficult.

“The basic idea is that instead of buying 100% of a property, you buy a share (for example 10 %–75 %) of its market value, and pay rent on the remaining shared portion, usually owned by a housing association or similar.

“Because you’re only buying a part of the property, the deposit and mortgage required are lower than if you were buying 100%. This makes shared ownership especially appealing for first-time buyers or those with limited deposit funds.”

In essence, with shared ownership, you only pay the deposit on, and need a mortgage for, the share of the property you are buying. This means the amount of money needed for the deposit is usually a lot lower than it would be if you were buying the whole property outright. It’s an excellent option for first-time buyers or those with limited funds for a deposit.

Sharing his tips on for choosing the right shared ownership property and mortgage expert Sam Fox said:

“Start by checking your total monthly commitment: Factor in rent on the remaining share, service charges, repairs, and insurance. It’s important to also choose an appropriate share size: Avoid paying high rent for a small share or overstretching finances with too large a share. Look for areas where resale is viable and where you’d be comfortable long-term. Be sure to check build quality, service charges, communal maintenance, and management of the landlord. Consider whether you might want to move or buy out fully, and understand the resale rules. Remember that shared ownership isn’t always cheaper than a regular mortgage when adding rent, service charges, and the mortgage repayments. Crucially, seek specialist advice: A professional experienced in shared ownership can help navigate mortgages, legalities, stair-casing, and resale.”


Breakout: Pros and Cons of Shared Ownership

Pros
Lower deposit required: The deposit (and mortgage) needed is smaller because you’re buying a share.

Potential to buy a more expensive property: You may be able to access properties that might be out of reach if buying outright.

Equity growth: The share you own benefits proportionally from any increase in the overall value of the home.

Stepping stone onto the housing ladder: Especially for first-time buyers or those struggling with deposits.


Cons
Paying rent on a share you don’t own: Your monthly costs might be higher than a “normal” mortgage for the same share.

Eligibility restrictions: There are income ceilings, first-time buyer requirements, and other eligibility conditions.

Resale and stair-casing complexity: Buying further shares or selling can be more complex than standard ownership.

Limited property stock: Many schemes restrict you to new-builds or properties offered under the shared ownership framework rather than the full open market.

Rent and service charges can rise: Because you’re still paying rent on the portion you don’t own and possibly service/maintenance costs.

Potential for less control: Structural changes may require landlord permission.