What's the minimum deposit for a house in 2025? 2
Key Takeaways
- With Shared Ownership you buy a share of the property, typically between 25% and 75%, with the option to buy more or all of it at a later date
- You pay a mortgage on the share you own, and reduced rent on the portion you don’t. That part is usually owned by a housing association, private developer or local authority
- You can increase the portion of the property you own through a process known as ‘staircasing’, until you own it outright or wish to sell
Stepping onto the first rung of the property ladder may feel daunting – but Shared Ownership could give you a leg up and help you to own a home that may otherwise have been unaffordable. For all the latest information and to search for Shared Ownership properties, visit our Shared Ownership scheme page.
With Shared Ownership, you only pay the deposit on - and need a mortgage for - the share of the property you're buying. That means the amount of money needed for the deposit is a lot lower than it would be if you were buying the whole property outright.
With Shared Ownership, the share you can buy is usually between 25% and 75% of the total property, but with some homes, it can be as little as 10%. You pay a mortgage on the share you own, and reduced rent on the portion you don’t own.
That part is usually owned by a housing association, private developer or local authority.
As time goes on, you can increase your share in the property by buying more of it in increments, until you own all of it outright or are ready to sell it.
Are Shared Ownership properties all new-builds?Usually, yes. Most are either new-build or are older shared ownership properties that are being re-sold by housing associations.And they are always leasehold, which means they'll come with ground rent and service charge costs too. What are the rules for Shared Ownership?
The Shared Ownership scheme used to be focused on public-sector workers such as nurses and teachers. But provided you meet the following criteria, these days, anyone can apply:
- You must be at least 18 years old
- You’re a first-time buyer or are currently in the process of selling your own property
- You have a household income of less than £80,000 a year, or up to £90,000 in London
- Buying a home on the open market is unaffordable for you
- You meet the mortgage affordability criteria
- You can afford the costs involved (including rent on the portion you don't own, ground rent and service charges)
If you’re aged 55 or over, you may qualify for Older People’s Shared Ownership.It's similar to the standard scheme, but you’re only able to buy up to 75% of the property.Once you own this proportion, you won’t need to pay any rent.
