Affordable home ownership

Affordable home ownership covers options for people who can't afford to rent or buy a property on the open market' - it's also known as 'low cost home ownership'.

Read below for information on our Discount Sale Scheme and Shared Ownership Scheme before applying for affordable home ownership.

Affordable home owners sometimes choose to sell property bought through the schemes. Find out more about the ‘resale’ of affordable homes.

Discount Sale properties

Under the Discount Sale Scheme:

  • the purchaser buys 100% of a property
  • the price is lower than on the open market
  • the sale is administered by housing associations
  • the buyer obtains a mortgage for the discounted price
  • the buyer does not pay rent on the remainder
  • the buyer cannot purchase any shares in the property as it is a 'fixed equity' home

Typical discount sale property prices range from £58,000 for a 1-bed flat to £103,000 for a 4-bed house, but prices can vary for individual sites.

Shared Ownership properties

Shared ownership properties are jointly owned by a purchaser and a registered provider (or housing association).

Under the Shared Ownership Scheme the purchaser:

  • buys a share of a property (usually between 25% and 75%)
  • the purchaser pays rent on the remaining share
  • makes two monthly payments, one for the mortgage and one for the rent
  • may increase or decrease their share in the property (known as 'staircasing'), until it's purchased outright

In most cases the combined rent and mortgage cost is less than taking a mortgage out on the entire property.

There are instances when it's not possible to purchase 100% of a shared ownership property, for example if the property has been built on a 'designated rural exception site'.

Help to Buy

Help to Buy is a government scheme which helps buyers to purchase a property, funded by a mortgage. A mortgage is taken out with monthly payments in the normal way. A deposit is still required.

Find out more on the Help to Buy website.

Also see

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