Understanding the New Shared Ownership Model: What It Means for You

At NHG Homes, we’re committed to helping more people take their first steps onto the property ladder. Shared Ownership has long been a popular route to affordable homeownership, and recent government reforms have made it even more accessible. If you're considering buying a home through Shared Ownership, here's what you need to know about the new model and how it compares to the previous one.

What Is Shared Ownership?

Shared Ownership is a government-backed scheme that allows buyers to purchase a share of a property—typically between 10% and 75%—and pay rent on the remaining portion. Over time, buyers can increase their ownership through a process called staircasing, eventually owning 100% of their home.

Key Changes in the New Shared Ownership Model

The new model, introduced under the Affordable Homes Programme (2021–2026), brings several improvements designed to make Shared Ownership more flexible, affordable, and buyer-friendly.

1. Lower Initial Share

Old Model: Minimum purchase of 25%
New Model: Minimum purchase reduced to 10%
Benefit: Smaller deposits and more accessible entry point for first-time buyers

2. More Flexible Staircasing

Old Model: Buyers could only staircase in 10% increments
New Model: Buyers can staircase in 1% increments for the first 15 years
Benefit: Easier to gradually increase ownership with reduced fees

3. Repair Support

Old Model: Different responsibilites for different owners and landlords.
New Model: Landlords contribute up to £500 per year for essential repairs for the first 10 years
Benefit: Reduced financial burden for new homeowners

4. Improved Resale Process

Old Model: Landlords had an 8-week exclusivity period to market the property
New Model: Buyers can end this exclusivity after 4 weeks
Benefit: Greater control and flexibility when selling your home

5. Rent Reform

Old Model: Annual rent increases based on RPI + 0.5%
New Model: Rent increases capped at CPI + 1%, with a new floor of 0%
Benefit: More predictable and fair rent increases aligned with other social housing.

New Shared Ownership Model Developments

Kidbrooke

Laney House At Kidbrooke Village

Royal Albert Wharf

What Does This Mean for NHGHomes Buyers?

These changes are designed to make Shared Ownership more accessible and manageable, especially for first-time buyers. With lower entry costs, flexible ownership growth, and support for repairs, the new model offers a more secure and affordable path to homeownership.

We are proud to be one of the first providers to be offering homes under this new model. Our new homes at Royal Albert Wharf and Kidbrooke Village. Whether you're just starting your journey or looking to increase your share, our team is here to guide you every step of the way.