Shared Ownership Threshold Reduced from April 2021 - GBW

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Threshold for shared ownership reduced from April 2021 to 10%

The first time buyer market could see a boost following the Government’s latest announcement. It’s plan is to reduce the initial share of a home that can be bought using the Shared Ownership Scheme. The government has reduced it from 25% to 10% and this will be put in place from April 2021.  This is very good news for young buyers!

There are many reasons why first time buyers are struggling to access the property ladder. They are finding it harder than ever to secure a purchase due to:

  • Mortgage lenders increasingly reducing their low deposit mortgages
  • A lack of savings to dip into
  • Job uncertainty

The Shared Ownership Scheme

House Puzzle - Shared Ownership Scheme UKThis is currently available to households with an income of less than £80,000 (£90,000 in London). They are able to purchase between 25%-75% of the value of the property and rent the remainder. Typically these are new homes or properties owned by housing associations.  The owner is then able to purchase further shares in the house at 5% or 10% increments, known as staircasing.

What are the changes under the new terms?

  • The deposit will change to 10% of the purchase price
  • You can purchase increments at 1%, increasingly affordability
  • Increase the share owned with less limits on staircasing within the leases
  • Landlords will also be responsible for the repair and maintenance of the building in the first ten years under this change to the scheme.

Shared Ownership House Building in UKChief Executive of, Rob Houghton, commented on the change saying: “just over 10% of First Time Buyers are currently using Shared Ownership. Competition for these properties is already very strong and making the scheme more accessible to those with small deposits will undoubtedly boost demand further.”

The new version of Shared Ownership aims to help those who are unable to access the Help to Buy Scheme. The scheme, due to end in 2023, may become more difficult to access once regional caps are introduced in Spring 2021.

In order for this to make an impact, the Government must invest the £12.2bn they have pledged to build affordable homes.  The government has promised an investment of  £11.5bn in the form of an Affordable Homes Programme between 2021 and 2026. This should equate to an estimated 180,000 new homes across the UK.

“Today’s announcement represents the highest single funding commitment to affordable housing in a decade and is part of our comprehensive plans to build back better,” said Housing Secretary Robert Jenrick.


For further information please contact Ed or Kelly on Tel: 01284 365345 or email /

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