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How the government can help you buy a home: Shared Ownership (Resale)

If you live in England and are struggling to find an affordable home on the open market, you may be able to get help through the government’s HomeBuy shared ownership resales scheme. The following guide gives you an overview of the scheme, who is eligible, possible pitfalls and questions you need to ask before applying.

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The Basics

  • This HomeBuy shared ownership scheme allows you to buy a shared ownership home that has previously been lived in and is being sold on via the same scheme.
  • The homes vary greatly in terms of age, size and type. If you are only interested in new-build see top tips for buying a newbuild home.
  • You would buy the previous owner’s share either outright or by securing a mortgage. The housing association will own the remaining share. You will pay them a subsidised rent on this share you don’t own.
  • Over time you can buy more shares until you own 100% of that property, this is known as staircasing. You will incur legal fees every time you do this. You can find out more with our guide to staircasing your shared ownership home.
  • You are not restricted to buying the share that the owner currently owns.  If you can buy more, you will be able to do so.

How does it work?

  • You secure a mortgage to buy a share of the shared ownership property being sold either by a housing association or the tenant.
  • You will have to put a deposit down on that mortgage, usually between 5%-15% of the value of your share of the property depending on the lender’s policy and you financial situation. You can find out more with our guide to shared ownership mortgages.
  • In addition to owning that share, you will pay a discounted rent on the remaining share. This is usually discounted by 15%-20% below market rate.
  • You can buy more of the home by “staircasing” i.e. increasing your share. This in turn will reduce your rent.
  • Shares are usually bought in 10% increments but you will incur legal costs every time you do this.

Am I eligible?

Yes, if you:

  • Have an income of less than £80,000, or if you want to buy in London, you must have a household income of less that £90,000.
  • Are unable to afford to purchase a home on the open market.
  • Demonstrate access to savings or sufficient funds to pay a deposit, legal fees, stamp duty and other costs of moving.
  • Be able to sustain home ownership in the longer term.
  • Are a first time buyer or used to own a home but can’t afford to do so now.
  • Have a good credit history.

But to make it more complicated, there are further eligibility criteria, which differ depending on the housing association the property is offered through. 

Should I do it?

  • Do your research and make sure the rent payments plus the monthly mortgage repayments come to an affordable monthly amount. Bear in mind rent will be increased every year by the housing association but should stay below market value.
  • You will want to think about when you might be in a position to “staircase” and buy up more shares and work out how much that will cost including the fees involved. The cost of the new shares (sold in 10% chunks) will depend on the housing associations valuation of the property at the time. You will have to pay for this valuation.
  • You can sell your shared ownership home at any time. Unless you own 100% of the property, you will need to write to the housing association which will look for a buyer. After a certain amount of time, if it doesn’t sell, you will be able to sell it on the open market.
  • You will not be able to rent out of sub-let your property. So if your situation changes (you want to move into your partner’s place or have to move for work) your only options are buying the proportion you don’t own or selling your share. If property values have dipped since you bought your share of the property then selling will mean you will make a loss.
  • To avoid the risk of feeling trapped, be honest about the properties you are looking at. You are going to be here for the next 5 years at least – is there enough storage, are you expecting to start a family in that time and so on. It needs to be liveable.
  • Just because this is a government scheme doesn’t mean you get any more protection. It is your responsibility to keep up repayments on the mortgage loan.
  • As well as rent there will be service charges. Your lease will outline your responsibility for repair and maintenance of your home. Check what these will be and include when budgeting your monthly outgoings.
  • And don’t forget the additional costs of buying a home.

How do I do it?

You should follow the same process as the HomeBuy shared ownership (new homes) scheme:

  • Register with your local HomeBuy Agent, who has been tasked by the Government to act as an intermediary between you, the housing association and the property builders.
  • Look at the properties housing associations have on offer in your chosen area on the HomeBuy Agent’s website.
  • Ring the number on the advert and check eligibility with the housing association.
  • You will probably need to reserve a property and a fee may be applied.
  • Consider all the “should I do it” points above, do your research and work out your monthly outgoings as a result of buying a property in this way before pushing ahead.

And don’t forget we’re on your side, so please let us know how you get on.

Leave a comment (24)* Required

  1. Kylie ChapmanKylie Chapman

    I want to buy a resale but the percentage is to high with the massive hike in prices.
    I think the resale percentage strategy should be relooked at, otherwise shared ownership will become a thing of the past and we will have loads of houses sat around forsale between 70-90% what first time buyers can’t afford and defeats the scheme.

  2. Ivy BarbourIvy Barbour

    I am looking for a re-sale share to buy property, 2 bedroom house, with garage if possible . We have currently sold the home we are in , so really need some advice , and if there are currently any on the market , thank you .

  3. ShannonShannon

    Hi, I am interested in a shared ownership scheme. Could you forward on any 2 bed apartments / houses. Thanks.

  4. Mitchell BrownMitchell Brown

    We are interested in part buy part rent could you forward any 2 to 3 beds resales please thanks

  5. Gemma EastwoodGemma Eastwood

    I have a 25% equity of a 2 bedroom house in Harrow Middlesex that needs some updating. I have put in full double glazing. It has a parking space too. Close to Piccadilly line and local shops and schools. The housing association are very good, and the rent affordable.

  6. NigelNigel

    If I sell my part share of my house for a profit are the housing association entitled to any of that profit

  7. Trevor willarsTrevor willars

    Help please .we hav been trying to sell our 25per cent for two years. But every time we get near to completion the housing association throw up another hurdle the latest being anther survey we have already pai for three any help would be appreciated

  8. Karen burkeKaren burke

    We are interested in a part ownership or part ownership resale pontefract or Ackworth areas, 2 or 3 bedrooms Thankyou

  9. Ivy BarbourIvy Barbour

    We are interested in part buy part rent (shared ownership) kindly forward any 2 bed house (resale) please .
    Thank you

  10. Sandra MaloneSandra Malone

    My son is in the process of buying a 4 year old house on a 100% mortgage. He has now found out that the vendors only own a percentage of the property with a housing association owning the rest. This problem has only come to light through the Searches. How can he purchase the balance of the percentage owned by the housing association. He offered to buy the property in good faith not knowing it was shared ownership. Contracts have not yet been agreed or exchanged. Any advice would be appreciated.

  11. bernard hallbernard hall

    When the resale comes into the hands of the owner tenant can the advertised price be then increased by the tenant as part of a bidding exercise? I read rules where this suggests not.

  12. Cynthia AmoakoheneCynthia Amoakohene

    Am key worker I at St Thomas Hosptial NHS
    Nursing Assistant and looking for a house
    to buy I don’t know how to go about it
    Am first time buyer please I need help

  13. Barbara PearceBarbara Pearce

    my husband is 74 years old .He has Almhzimers. We have had to sell our home in Spain due to his health getting worse .We had to sell to return to the UK. We had no deeds or paper work for our house ,because of this we sold at a lose . We have £140,000 towards a home .Moving into a flat is not a option for us as my husband enjoys being outside .We cant get a mortgage ,have tried .We have a income of £2,050 a month coming in .Can you help .Buying into a shared ownership is our only way .

  14. Michelle WoodsMichelle Woods

    Hello I’m interested in maybe buying a part ownership resale property , I just dont know where to start and how I go about it, do I have to find my own solicitor , and a mortgage or could someone do all that for me ,

  15. Hayley GreenwoodHayley Greenwood

    I can find no guidelines on what rate the rent of a resale property is to be set for a new owner of the resale property. Some resales seem to set the rent back down to 3% or less of the unsold value which makes the property affordable, whereas other resale properties are being advertised to include all the rent increases that the previous owner has accrued, which often makes the property unsellable as a shared ownership property as the rent and mortgage together is more expensive than a mortgage for the 100% share. Are there any guidelines as I cannot find any even on the government’s website.

  16. Carol whitingCarol whiting

    I’m looking for a already been lived in property I work in Eastbourne East Sussex NHS so looking for a 10 mile radius … a do up would be nice

    • HomeOwners AllianceHomeOwners Alliance

      Dear Carol – I would suggest you contact your local Help to buy agent and see what might be currently available

  17. Emmanuel A BaduEmmanuel A Badu

    I would like to apply for help to buy resale scheme

  18. Mrs NuggyMrs Nuggy

    I have some questions about shared ownership resale from the vendor’s point of view (the current shared owner who is selling their share along with the property).

    I understand that the housing association have first dibs on arranging the sale of the property for a limited time period specified in the lease. Are there regulations governing the ‘agents fees’ charged by the housing association?

    I have heard that some housing associations charge 2% of the sale price (the whole sale price of 100% value, even if the vendor is only selling a 25% share)

    This seems like profiteering, as the shared owner vendor has to pay for a surveyor’s valuation, from a list of surveyors determined by the housing association.
    The shared owner vendor has to provide any photos and description of the property, including measurements.
    The shared owner vendor has to provide any floorplan themselves or use a company from a list determined by the housing association.
    The shared owner vendor has to conduct the viewings.
    These are all things that a commercial estate agent would undertake as part of their fee.

    How and where does one find the policies and procedures governing the resales for any particular housing association please?

    • AKerrAKerr

      Hi Mrs Nuggy You will need to contact your housing provider to let them know that you’d like to sell your home and they should have policies they can share with you that set out the steps. But you’re right this does sound like profiteering. We’d like to hear more about who your housing provider is and see if we can help. Please contact if you have time. Thanks

  19. KeithKeith

    Hi we have 3 bedroom detacth house my wife is disabled so we are looking for a bungalow to part ownership we live at ingleby barwick ts175fe the bungalow around there or not to far from ingleby can you help I am 74years old my wife is 70 years old

    • Sara HindSara Hind

      Hello Keith and thanks for getting in touch. Have a read of our article here. You’ll see that you’ll need to register with your HomeBuy Agent whose details can be found here.

  20. Marine WharfMarine Wharf

    This article was really helpful, it helped me to understand more about shared ownership industry and how it is done.
    Would you recommend shared ownership in the Wigan area.


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