What is shared ownership?

Shared ownership allows you to buy a share of a new build home, usually between 25% and 75%, while paying rent on the remainder owned by a housing association or developer. You receive a mortgage for your share and own it outright, paying council tax and building insurance as a homeowner would. The housing association holds the other share and collects rent monthly.

The scheme matters because it lowers the entry barrier to new build property ownership in Birmingham. Rather than saving a large deposit for 100% purchase, buyers can enter the market with a smaller deposit against their share. Over time, buyers can increase their ownership through a process called staircasing, where they purchase additional shares in 5-10% increments until they own the property outright. Each staircase purchase requires a new valuation and separate mortgage, though not all buyers choose to staircase.

Shared ownership is most commonly available on new build developments, where housing associations and developers reserve units for the scheme. Terms vary by scheme, but rental payments typically account for the housing association's share and associated management costs. Exit from shared ownership can be complex if you need to sell before reaching full ownership, as you may only be able to sell your share back to the housing association or the next buyer must also qualify for the scheme.