7 Common Misconceptions around Shared Ownership 

Taking your first steps towards homeownership can be daunting, and with numerous schemes available to help, understanding what each one entails can become confusing quickly. Shared Ownership exists to make your dream of owning a stylish home a reality. 

To help separate facts from fiction, we’ve compiled this myth-buster guide so you can feel more informed and reassured about this affordable homeownership scheme.

1. “Shared Ownership means I have to share with a stranger”

It might have ‘shared’ in the name, but you don’t have to share your home with anyone if you don’t want to. The ‘shared’ aspect of the scheme is because you’re sharing ownership of your home with a housing association, like NHG Homes. 

When you pursue Shared Ownership with us, you'll initially purchase a share between 25%-75% of the property's full value and pay subsidised rent to us on the rest (as we'll own the remaining share).

2. “I’ll never own my property outright” 

In most cases, you can purchase more shares in your property until you own 100% of it. This increases the portion you pay as a mortgage but reduces the amount of rent you pay to us. This is a process known as staircasing. 

3. “It’s only for first-time buyers” 

While the scheme is particularly helpful for first-time buyers looking to take their first steps to homeownership, it’s also a good option if:

• You’re looking to move after a relationship breakdown

• You’re not currently able to afford to buy a home suitable for your needs on the open market

• You don’t currently own a property or you’re in the process of selling your home

• You’re looking to upsize or downsize

If you meet the eligibility criteria, the scheme is open to anyone over the age of 18. 

4. “It’s more expensive than renting or buying”

While Shared Ownership involves both mortgage and rent payments, it can often be more affordable than private renting, with the added benefit of owning a stake in your home. 

Additionally, the scheme usually demands a much lower deposit, typically between 5%-10% of the share you’re purchasing. For instance, if you’re buying a 25% share of a £200,000 property, your share is worth £50,000. If the required deposit is 5%, you would need to save £2,500, greatly lowering your deposit and overall moving costs.

If you choose to buy more shares in your property, your mortgage payments will increase, but your rent will decrease in turn. 

5. “I can’t decorate or make changes”

One of the biggest attractions of Shared Ownership is that you are the homeowner. This means you can decorate to your heart's desire! Whether you want to paint your living room lime green or put up posters of your favourite band, it’s completely up to you. 

When it comes to structural changes, such as fitting a new kitchen or bathroom, you would need to gain permission from us in accordance with the terms of your lease. But other than this, you have the full right to decorate as you wish. 

6. “It’s hard to sell a Shared Ownership home” 

We know that circumstances change, and there might come a time when you want to sell your home. Shared Ownership is available on both new build properties and resale properties that are being sold by current owners. 

If you want to sell, you’ll need to contact us to let us know. Shared Ownership homes usually have long waiting lists, so they will likely have the first opportunity to try and sell your home to other buyers, with a set amount of time to be able to do so. After this time, you will be able to advertise your home yourself, privately or through an estate agent. 

7. “It’s only for people on benefits or low-income households” 

Shared Ownership is open to a wide range of individuals, including those who can’t afford a home on the open market. While there is a household income limit (typically £90,000 in London) many buyers are working professionals and young couples. 

Interested in How Shared Ownership Could Help You? 

By addressing these common misconceptions, we aim to demonstrate that Shared Ownership can be a smart and accessible way to achieve homeownership. Whether you’re just beginning to explore your options or you’ve already decided that Shared Ownership is right for you, NHG Homes is here to support you every step of the way. 

Contact our friendly team for personalised advice or learn more from our trusted resources.