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New Build Shared Ownership (Part 1)

Diarmuid Phoenix explains how shared ownership works on new build properties. Episode one of two, recorded in March 2026.

What is shared ownership and how does it work with new build properties?

Shared ownership is a scheme that lets you buy a home or part of a home. It can be used on new builds or standard resale properties, and you pay rent on the part that you don’t own. It’s designed for people who are finding it difficult to get a mortgage or a suitable home in the standard fashion. It works largely the same on new build homes as on resale ones. You purchase a percentage of the share of the home and then pay rent on the remainder.

What percentage of the property can I initially purchase?

This can vary in different parts of the UK. In England, it can range from 10% up to 75%. For older homes, it might start at 25%. With new builds, you can benefit from a lower amount to begin with. In Northern Ireland, where we’re based, it’s a scheme called co-ownership, which is similar, but it starts at 50%.

Can I increase my ownership over time, which is known as staircasing? What happens to my mortgage if I staircase to 100% ownership?

Yes, you can increase your ownership over time by staircasing, and it can be as little as 5% increments each time. Most people who enter into shared ownership have a goal to buy the property as quickly as they can. They might jump up by more than 5%, or even go straight to 100% as soon as they can. Once the ownership is at 100%, it’s like having a standard mortgage, with no element of rental to the housing association. The housing association usually carries out a final valuation once you’re ready to take 100% ownership. That determines their share of any increase in the value.

What are the eligibility criteria for shared ownership on a new build property?

For new build shared ownership properties in England, the main eligibility rules are to be a first-time buyer – or having previously owned a home, but you can’t now afford to buy. If you own another property at the moment, you won’t qualify. It could be that you’re forming a new household, as your previous relationship ended and you’ve got a new partner. If you’re an existing shared ownership customer and you want to move, that’s fine. Perhaps you currently own a home and want to move, but you can’t afford a suitable new build. In that case you may qualify – it’s about the situation, more than anything else. You would have to sell your current home by completion – you can’t own two homes for this scheme.

Is shared ownership available in my area for new builds? How can I find out?

The scheme is available UK-wide, but it depends on the area you’re in. In Northern Ireland, this is known as co-ownership and is offered by one particular company. In most of England, it’s led by local housing associations in particular areas and the criteria can vary. I would suggest you contact your local mortgage advisor and we’ll guide you.

Which lenders offer shared ownership mortgages for new build homes? Do all of them offer this?

Again, it can depend on the region, but some of the high street lenders in this market include Halifax, Santander, Nationwide, Barclays and Leeds Building Society. In Northern Ireland specifically there are Danske Bank, Progressive and AIB. That’s not a complete list – there are several others. England will always have a wider range of lenders, but those are the standard ones we would usually go to first.

What are the minimum and maximum deposit requirements for shared ownership on new builds?

Lenders usually expect a deposit of at least 5% of the share that you’re buying. So if you’re buying a 25% share of a £300,000 home, your share would be £75,000. A 5% deposit on that would be £3,750. However lenders including Progressive, Danske Bank and AIB can actually consider applications with no deposit at all. [Information is correct at the time of recording in March 2026]. So in some cases the minimum deposit is zero, but if you are putting a deposit down, the minimum would be 5%. Lenders rarely set a maximum deposit – but extremely high deposits may trigger them to ask why you need shared ownership in the first place.

What is the typical interest rate for shared ownership mortgages?

Because shared ownership mortgages are somewhat specialised, they aren’t offered by all lenders. That means interest rates tend to be slightly higher than for standard residential mortgages. This is particularly true for a zero deposit mortgage. The range does overlap with general mortgage prices, so it’s not too big a difference. As an example, today in March 2026 a two-year fixed rate is typically 4.5% to 5.8% and a five-year fixed rate might be 4.2% to 5.5%. Obviously these change all the time – even from hour to hour, as we’ve seen in the last few weeks.

How is affordability assessed for a shared ownership mortgage on a new build?

New build shared ownership affordability is assessed differently from a standard mortgage because you’re only buying a share of the property. Because you’re paying rent on the unsold share, lenders must make sure you can afford both that and the mortgage payment. When you’re putting your information into an affordability calculator, you will get different borrowing amounts depending on whether it’s shared ownership or not. It’s taken into consideration by the lenders.

Will I need to pay rent on the portion I don’t own? How much?

You always pay rent on the proportion of the property you don’t own, including on a new build home. It’s usually a percentage of the unsold share’s value, and it’s separate from your mortgage. Housing associations tend to charge between 2.75% and 3% of the annual unowned share. For example, if the unowned share is worth £80,000, the annual rent might be 2.75% of that, which is £2,200. Divide that by 12, and that’s the monthly amount – £183. Most housing associations’ websites have their own calculator which can tell you exactly what the rent would be.

What are the upfront costs? Are there any service charges or ground rent fees for new builds?

Yes, buying in this situation does involve upfront costs and ongoing fees and charges. You’re buying a share and paying rent on the rest. Some fees are similar to a standard purchase, but housing associations may also charge fees for a Decision in Principle. This is like the Decision in Principle your broker will get with a lender for any mortgage – where the housing association also runs a credit check. There might be a reservation fee from the housing association, and there may be ground rent service and charges for flats. Some associations charge staircasing fees, as well.

Is there stamp duty to pay on shared ownership new build properties?

Stamp duty will apply, but only on the share that you’re buying, not the full market value of the property. When you buy additional shares in the future, you will pay stamp duty land tax on that share based on the market value at the time. If the property value has increased, extra stamp duty could apply.

Key Takeaways:

Shared ownership is a scheme designed to help people who are finding it difficult to secure a standard mortgage by allowing them to purchase a percentage of a home and pay rent on the portion they do not own.
The initial percentage you can purchase for new build properties in England can start as low as 10% and go up to 75%.
Homeowners can increase their ownership over time through a process called staircasing, typically in 5% increments, with the aim of eventually reaching 100% ownership to eliminate the rental payments.
Eligibility for new build shared ownership in England is mainly for first-time buyers or those who have previously owned but cannot afford to buy now; you must sell any current home by completion to qualify.
Lenders typically require a minimum deposit of 5% of the share you are purchasing, but some may consider applications with no deposit. Affordability is assessed based on the ability to cover both the mortgage and the required rent on the unsold share.

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. The information contained within this article was correct at the time of publication but is subject to change.

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New Build Shared Ownership (Part 2)

We continue the conversation on shared ownership and new builds with Diarmuid Phoenix. Episode two of two, recorded in March 2026.

Are there any restrictions or risks with new build shared ownership properties?

They will come with some specific restrictions and risks to be aware of. These may differ from standard resale home purchases and mortgages. There could be restrictions on the property itself, and the minimum share you can buy could be restricted. For new builds, that minimum could be 25% to 40%.

There could also be staircasing limits in some cases. A lot of new build shared ownership schemes allow you to staircase up to 100%, but others may cap it at 80% or even 75%, especially on older person initiatives. If it is capped, you continue paying rent on the remaining share indefinitely.

There can also be leasehold restrictions. Most new build shared ownership properties are leasehold, and particularly flats. The lease terms are typically 99 to 125 years, and shorter leases can make it harder to get a mortgage. Some lenders have restrictions on leases with less than a certain amount of years left on them, which can also make resale more difficult in future.

How long is the new build warranty and what does it cover?

New build shared ownership homes usually come with a warranty, also called a structural or NHBC warranty. It protects you against defects in construction and usually lasts 10 years from the completion of the build.

Within the first two years, it’s the builder’s liability for any snags. From three to ten years, it’s insurance coverage.

Will my mortgage offer remain valid if there are construction delays?

Yes. With new build shared ownership properties, construction delays can affect the mortgage offer. I’ve had some personal experience of that, in fact. It depends on the lender and the timing. Most lenders issue a mortgage offer for three to six months, but many will extend that to nine months for new builds.

If the property isn’t ready and completion is delayed beyond the offer expiry, the lender might require an extension for a small fee. They may choose to reassess your application entirely, including your income, credit and deposit.

If anything has changed – if interest rates have gone up or lender policies have changed, for example, you may get new conditions or a higher rate.

I personally managed to make a purchase in 2022 just before rates went sky high – but we had to do a lot of cage-rattling to get that through. If things get delayed for too long it can have a negative effect on the purchaser.

Are shared ownership new builds subject to resale value caps?

Yes, but not a cap on the value like older schemes used to have. Housing associations now control the resale – so you can’t sell the property on the open market without their consent.

Most leases require you to offer the housing association the first right of refusal or to sell via their approved process. That ensures the property stays within the affordable housing sector and is sold to buyers who meet the criteria. You can’t just sell it to anybody, basically.

Do I need a solicitor with experience in shared ownership?

Yes. We strongly recommend using an experienced solicitor or conveyancer for shared ownership new build properties. Shared ownership leases are more complex than standard property purchases, so previous experience is important.

Legal checks can be specific to shared ownership rather than standard. Most solicitors who do conveyancing will have experience in this, but if you are shopping around, that’s something to check.

How long does the application and purchase process usually take? Any differences with new builds?

The mortgage application usually has a similar duration, and involves uploading payslips and bank statements as normal. Where the delays tend to come is in construction, reservation periods and snagging. There can be NHBC warranty checks too, which can take up additional time.

What happens if I want to sell my share?

There will be steps and rules to follow. It’s not the same as selling a full freehold property, obviously. You can only sell your share, not the whole home.

The housing association has the right to first refusal, and the sale price is based on the current market value at the time, not the original price. The housing association makes its profit as part of the sale.

You can’t just put it onto your local property website like a private home, because the housing association has rules on that. If you staircase up to 100% ownership, though, you do get full control over the resale like a normal property.

But if the housing association is still involved they’ll still have rights. It just ensures there’s compliance within the shared ownership requirements when selling the property.

What happens if I can’t afford the rent or mortgage payments?

If you can’t pay, there are potential consequences and steps to take. Obviously, falling behind with payments will affect your credit rating and you may lose the home. The standard risk warnings when buying property will apply.

If you start to have affordability issues, contact both the housing association and the mortgage lender to explain your situation. They’ll have protocols in place to help you as best they can.

It could be just a temporary situation, and they can help while you get through to the other side. They might reduce the rent or freeze your mortgage payments for a period of time – as lenders did during Covid.

Don’t delay. Make contact as quickly as you can, because the longer you leave these things, the more they can snowball and become much bigger problems in the future.

You’ve demonstrated this in both parts of the podcast, but how can a mortgage broker help?

Speaking to a broker is the first thing to do here. We know our way around the market and the criteria, so we can help you navigate through it all. This topic is very nuanced. While certain people are very financially savvy and will go directly to banks and building societies to sort their own mortgages out, most people will really benefit from support in this area.

There are even some mortgage brokers that don’t look at shared ownership. Find one that specifically mentions this on their website, as they’ll have the required experience to help you properly.

Key Takeaways:

New build shared ownership properties come with specific restrictions, such as minimum share purchase (25% to 40%) and potential staircasing caps, which may be as low as 75% or 80%.
A new build shared ownership home typically includes a 10-year structural or NHBC warranty, covering builder’s liability for snags in the first two years and insurance coverage from years three to ten.
Construction delays can cause mortgage offer expiry (typically 3-6 months, extendable to 9 months for new builds), requiring the lender to reassess your application, which could lead to new conditions or a higher interest rate if market conditions have changed.
When selling, the housing association controls the resale process, often having the first right of refusal, and the sale price is based on the current market value, ensuring the property remains within the affordable housing sector.
It is strongly recommended to use a solicitor or conveyancer experienced in shared ownership because the leases and legal checks are more complex than those for standard property purchases.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

The information contained within this article was correct at the time of publication but is subject to change.