New Build Shared Ownership
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New Build Shared Ownership (Part 1)
Charlie Connolly talks us through shared ownership on new build properties.
What is shared ownership and how does it work with new build properties?
Shared ownership is a government-backed scheme designed to help people buy a home if they can’t afford to buy one on the open market. The scheme is commonly available on new builds.
What percentage of the property can I initially purchase?
Under the existing shared ownership rules in England, you can purchase as little as 10% and up to 75% of the property. Most commonly, though, you would purchase a share worth 25% up to 75%.
Can I increase my ownership over time, known as staircasing? What happens to my mortgage if I staircase up to 100% ownership?
Yes, it is possible to increase your ownership over time. If you staircase up to 100%, you no longer pay rent to the Housing Association, which means your monthly outgoings will reduce.
What are the eligibility criteria for shared ownership on a new build property?
To purchase a new build property on a shared ownership scheme, you would need to meet certain criteria on income, ownership and residency. For example, your annual income must be lower than £90,000 in London or under £80,000 elsewhere in the UK.
You must not own another home – or if you do, you must sell your existing property before you complete on the shared ownership property. You must be over 18 years old and have the right to reside in the UK.
Finally, the home must be a residential property and you must not let it out to tenants.
Is shared ownership available in my area for new builds? How can I find this out?
To find out if it’s available in your area, you can use platforms like Rightmove and Zoopla. You can just filter shared ownership options within your postcode. You can also try speaking to your local housing associations and builders.
Which lenders offer shared ownership mortgages for new build homes? Are there many?
Most high street lenders do offer joint shared ownership mortgages on new build homes, Availability depends on meeting their criteria.
Some high street lenders offering shared ownership mortgages for new build homes are Nationwide, Halifax, TSB, Barclays and Leeds Building Society [information correct at the time of recording in July 2025].
What are the minimum and maximum deposit requirements?
The minimum deposit is 5% of the share you’re buying. This is the typical minimum accepted by most mortgage lenders. As far as I’m aware, there’s no maximum deposit.
What is the typical interest rate for shared ownership mortgages?
Typically, interest rates are broadly in line with the standard residential mortgage rates. They can sometimes be slightly higher, depending on the lender and the deposit size.
How is affordability assessed for a shared ownership mortgage on a new build?
Affordability works slightly differently from a typical full ownership mortgage, because lenders have to consider your additional outgoings. These include the rent element on the housing association share, service charges and ground rent.
Will I need to pay rent on the portion I don’t own? How much will it cost?
Yes, on the percentage of the property you don’t own, you will have to pay rent plus any service charges and ground rent. The Housing Association will advise how much you would need to pay, as this can vary from area to area.
Is there stamp duty to pay on a shared ownership new build property?
Yes, stamp duty is applicable with shared ownership, but you’d only pay it on the share you’re buying. This could mean you may not have to pay it until you choose to staircase up.
We will be back with a part two episode at some point, but have you got anything else to add before that?
We’ve covered a large part of it. But if you have any queries about new build shared ownership, I suggest speaking to a mortgage broker. We’d be happy to guide you through the process.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
For specialist tax advice, please refer to an accountant or tax specialist.
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New Build Shared Ownership (Part 2)
Charlie Connolly continues the conversation on shared ownership and new build properties. Episode two of two, recorded in August 2025.
Are there any restrictions or risks with new build shared ownership properties?
Yes, there could potentially be restrictions and risks when buying a new build shared ownership property. While this is an affordable path onto the property ladder, it’s also important to understand the potential restrictions.These are all leasehold properties, to start with, and there might be staircasing limits and other restrictions. You may be limited in what you can do to the property in terms of home improvements.
Other risks are increases to service charges and ground rent, which can’t be controlled. There could also be maintenance costs. Plus, you have a smaller pool of mortgage lenders to choose from.
How long is a new build’s warranty and what does it cover?
New build properties in the UK typically come with a 10-year structural warranty from providers such as the National House Building Council (NHBC) or Premier Guarantee, to name a couple.Most warranties cover major structural defects to foundations, load-bearing walls, roof structure, floor joints, subsidence and structural impact to stairs.
Will my mortgage offer remain valid if there are construction delays?
Possibly not. Most mortgage offers last for six months. However, lenders will allow you to potentially extend that by three months for new builds. With some lenders out there you could have a nine-month mortgage offer.Are shared ownership new builds subject to resale value caps?
No, in most cases, shared ownership new builds are not subject to resale caps.Do I need a solicitor with experience in shared ownership?
Yes, using a solicitor with shared ownership experience is a good idea. At Midas we have access to a number of solicitors, so if you are having trouble finding one with experience in new builds and shared ownership, we can point you in the right direction.How long does the application and purchase process usually take?
The house buying process generally takes 12 to 24 weeks for new builds, but that can vary significantly. It depends on whether the property is actually built and ready to move into.New builds often have a quicker conveyancing process. It can take around 28 days from reservation to exchanging contracts. However, there are a lot of people involved in the transaction, so this timeline can be affected by various factors.
Can I sublet or rent out my portion of the property?
No. With shared ownership properties, you cannot sublet or rent out your home in almost all cases. You would need written permission from the housing association, which is very rarely granted.What happens if I want to sell my share?
To sell a share, the process is a little different to a standard sale. Firstly, you would have to notify the housing association to start the formal resale process.Next, you would need to get a RICS valuation at your own expense. The housing association then has an 8 to 12 week period to sell your share of the property. This is called the nomination period.
How does shared ownership impact future property value?
Shared ownership impacts future property value in how gains or losses are shared between the homeowner and the housing association. For example, if you own a 50% share, you would benefit from 50% of any increase to the value of the property.If the property was purchased for £180,000 at 50%, you effectively own a £90,000 share of the property. However, if it was to be revalued at £200,000, your share would have gone up to £100,000. Your share would be valued at £10,000 more.
What happens if I can’t afford the rent or mortgage payments?
For a shared ownership home, you need to pay the rent to your landlord for the share you do not own. You may lose your home and the money you put into the property if you do not pay your rent or you break the terms of the lease.The landlord usually reviews the rent each year, so it may increase.
Can I transfer ownership to a partner or family member in the future?
Yes, generally it is possible to transfer property ownership to a partner or a family member. This can be done through a Transfer of Equity where someone is added onto the property title.However, it’s important to understand there could be potential implications, including tax consequences. Making the transfer would also be subject to mortgage affordability and lending criteria.
How can a mortgage broker help here? Have you got any final thoughts?
You can lean on us and use our guidance throughout the process. If there’s anything you’re unsure about, you can ask us questions – we’ll guide you through the process from start to finish.YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.