Let me paint a familiar scene for many brokers. A client sits across the desk, clutching a spreadsheet of savings, full of hope. Then comes the calculation - deposit requirements, house prices, income limits, general outgoings, and you watch the optimism falter. For some, that’s where the conversation ends. For others, it’s the moment where a different path can open up.
Shared ownership has been around since the 1980s, quietly providing an opportunity for buyers who don’t have the means, or appetite, for a full purchase straight away. As affordability challenges have intensified, this is a product that has moved from being a niche option to a core consideration for many would-be homeowners.
The premise is simple: purchase a share in a qualifying property, often between 25% and 75%, and pay rent on the remainder. The deposit is calculated on the purchased share, meaning it can be significantly smaller - sometimes 5–10% of that share - than a traditional first-time buyer deposit.
For many potential buyers, that reduced upfront cost can be the difference between staying in the rental market for years and putting down roots much sooner. And because the scheme allows “staircasing”, it offers a clear pathway towards full ownership. Some lenders now allow buyers to staircase beyond the traditional 75% cap, making the end goal even more achievable.
While the mechanics of shared ownership are straightforward, the reality of who it suits is more complex. It can be a lifeline for those with irregular income patterns, for example, self-employed applicants with a short trading history, or for borrowers whose earnings are bolstered by benefits. There’s also scope for cases where historic credit blips might otherwise put a mainstream mortgage out of reach.
In today’s market, those nuances matter. A blanket approach can shut out perfectly credit-worthy borrowers, so finding a lender willing to take a case-by-case view can make all the difference. Longer mortgage terms, for example, can ease affordability, and a willingness to consider a wider range of property types from new-build houses to flats, including second-hand properties, expands options for buyers.
Despite its benefits, shared ownership still flies under the radar. The Barclays Property Insights Report for June 2025 found that 31% of consumers, and almost 4 in 10 (39%) of 18–34-year-olds, had never heard of the scheme. Yet more than half of renters (53%) believe homeownership would be impossible without the help of government-backed schemes.
Among those aware of shared ownership, a third (34%) see it as a more affordable way onto the ladder than a standard mortgage, and nearly one in five (19%) believe it’s a solution for first-time buyers struggling with current market conditions.
For brokers, this presents a clear opportunity. Many clients won’t ask about shared ownership simply because they don’t know it exists, but when you introduce it, the conversation can change completely. Even for those who are aware of the scheme, there’s often a need to address misconceptions and provide a clearer picture of how it works and performs in practice.
Which it’s why it was such a positive to see the recent introduction of the Shared Ownership Code, a cross-industry framework developed with housing providers, lenders, and sector experts. Designed to enhance transparency and service quality, it includes a Service Charge Information Document (SCID) for prospective buyers, a guaranteed 12-month defects period, formal training requirements for provider staff, and reminders when leases fall below 90 years.
Ann Santry, chair of the council, described the code as “a stronger and fairer shared ownership market” and urged providers nationwide to adopt it to “future-proof the product for the good of current and future shared owners.”
This is a sensible, necessary approach, but that’s not to say shared ownership is the right fit for everyone; it isn’t. The key for brokers is knowing which lenders combine competitive products with an openness to non-traditional circumstances, whether that’s shorter self-employed trading histories, higher proportions of benefit income, or more generous staircasing thresholds. And how this fits with the borrower’s financial situation and aspirations.
In a market where affordability remains a stumbling block, it’s vital to include shared ownership in your advice toolkit. Because sometimes, helping clients onto the ladder means showing them that the first step doesn’t have to be the biggest.
