Homes to buy

Shared ownership

Shared ownership is a national scheme that helps you buy your dream home. You start by buying between 10% and 75% of your home and pay an affordable rent on the remaining share. Over time, you can buy more shares in your home when you can afford to – this is known as staircasing.

This means a smaller deposit, smaller mortgage repayments and the flexibility to increase your share whenever you're ready.

You could be eligible for shared ownership if you:

• have a household income of under £80,000
• own no other property in the UK or overseas
• have a good credit history and can afford the costs and regular payments involved in buying a home; and
• have savings of at least a 5–10% deposit on the share of the property that you are buying

Shared ownership means:

• your monthly repayments could be less than renting privately
• the deposit required is smaller as you are only buying a share of the property
• you can purchase further shares (known as staircasing) until you own your home outright (in most cases); and
• you can take the first step onto the property ladder.

Shared ownership does not mean:

• living with a stranger
• you can't sell your home
• living in an undesirable area or
• you can't make your house your own.

Discounted Market Sale

Discounted Market Sale (DMS) homes are sold at a reduced price compared to the full market value, helping more people buy a home they might not otherwise be able to afford. The discount is applied to the property price, meaning you buy the home outright but pay less than the open market value.

You could be eligible for Discounted Market Sale if you:

• have a household income of under £80,000
• do not currently own another property
• have a good credit history and can afford the mortgage and regular payments involved in buying a home; and
• have savings for a deposit and are able to secure a mortgage.

Discounted Market Sale means:

• you buy your home at a reduced price compared to the open market
• you own 100% of your home from the start
• you only need a mortgage for the discounted purchase price; and
• it can help you take your first step onto the property ladder.

Discounted Market Sale does not mean:

• you are buying a share of the property
• the home is lower quality than other homes on the market
• you cannot sell your home in the future; or
• you must pay the full market value.

Rent to Buy

Rent to Buy is designed to help you save for a deposit while living in a new home. With this scheme, you rent a home at a reduced rate (usually around 20% below the local market rent) for a set period of time. This gives you the opportunity to save towards a deposit and prepare to buy a home in the future.

You could be eligible for Rent to Buy if you:

• have a household income of under £80,000
• do not currently own a property
• are able to afford the reduced rent and household bills; and
• are actively saving for a deposit to buy a home in the future.

Rent to Buy means:

• you can rent a home at a reduced rate, helping you save towards a deposit
• you have time to improve your financial position before buying
• you can live in a high-quality, new-build home while preparing for home ownership; and
• it provides a stepping stone towards buying your own home

Rent to Buy does not mean:

• you must buy the home immediately
• you need a large deposit straight away
• you are tied into buying if your circumstances change
• you cannot move on to buy another home when you are ready.