Staircasing valuations: Q&A with Homes England

Shared ownership staircasing costs: what do shared owners need to know about valuations for staircasing?

In this 4-part Q&A, Homes England explain shared ownership valuations, from purchasing your first share to resale.

• Part One: Buying shared ownership
• Part Two: Staircasing
• Part Three: Lease extension
• Part Four: Resale

In Part 2, we take a closer look at shared ownership staircasing costs and valuations.

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Here are the key takeaways:

• How staircasing works: Most shared ownership leases allow staircasing to 100%. But staircasing caps apply to Older Persons Shared Ownership (OPSO) and rural homes in Designated Protected Areas.
• Shared ownership staircasing costs: New “model” leases allow 1% staircasing. In this case, the cost is based on the Land Registry’s House Price Index (HPI). Otherwise the cost is based on a RICS valuation.
• How long does a RICS valuation last?: A RICS valuation usually lasts for three months. But this can be used over a longer timescale in some circumstances.
• Shared ownership valuation problems: If valuation rules were followed, then a RICS valuation is binding.

Read on….

Q1. How does staircasing work?

Most shared ownership leases allow for staircasing to 100%.

There are some exceptions to this where the maximum level of staircasing is restricted, such as Older Persons Shared Ownership (OPSO) leases (75% staircasing restriction) and restricted staircasing leases of shared ownership homes in Designated Protected Areas (80%). The latter are shared ownership homes in rural areas designated by Government where some form of “protection” for shared ownership homes is in place to ensure the homes remain as affordable housing.

The minimum amount of staircasing is set out in the shared ownership lease, usually within the definition of the “Portioned Percentage”. 

Most shared ownership homes completed before April 2021 will have a lease provision stating staircasing in minimum 10% amounts. For many new shared ownership homes completed after this date the minimum staircasing amount will be 5%, together with the ability to staircase in 1% increments in the first 15 years of occupation.

There are still some older shared leases in existence where the lease states a minimum 25% staircasing restriction. Homes England is more than happy to give its consent for such staircasing provisions to be amended to allow for minimum 10% staircasing.

(Note: there will be some homes completed after April 2021 that still have what is termed the standard lease provision of a minimum 10% staircasing because funding for these homes was agreed before April 2021)

Q2. Could you explain valuations for staircasing?

5% staircasing and above

For staircasing transactions of 5% or more it is a requirement that the price of the share purchased is established by a RICS valuation. (For information on 1% staircasing transactions please see questions to follow.) A combination of the lease and Homes England’s Capital Funding Guide set out the basis on which a staircasing valuation should be carried out.  The main points are as follows.

• Market value – In Part One, we explained the definition of “Market Value” within the shared ownership lease. The basis for the valuation is what the interest of the leaseholder (shared owner) would fetch on the open market. The valuation is based upon the terms and conditions of the lease and assuming the unacquired percentage is nil (i.e. 100% is owned).
• Freehold – Where the freehold will be transferred at 100% staircasing (i.e. most houses but not flats) then valuing the home on a freehold basis (i.e. disregarding the lease length remaining) represents the interest of the shared owner when 100% is acquired.
• Leasehold – Where the home will remain leasehold at 100% staircasing (i.e, most flats and a small number of houses) then the staircasing valuation should be based on the remaining lease length (as that represents the “interest of the leaseholder“).
• Improvements – Where a shared owner has undertaken what are categorised as improvements to their home then any value added by these should be disregarded from any staircasing valuation..
• Good repair – Similarly, where a shared owner has not kept their home in good repair then any impact this has on the valuation should be disregarded..

Improvements

The disregarding of any improvements means that the shared owner is not, in effect, paying twice for the improvements that have been made where they have added to the home’s value.  

The disregarding of any failure to keep the property in good repair means that the shared owner does not benefit from this through a potentially lower value than would otherwise be the case if the home had been kept in good repair.

RICS valuations

It is important that any valuer commissioned for a RICS valuation for staircasing fully understands the basis on which such a valuation should be carried out.

The lease typically states that the landlord is to instruct the valuation with the cost covered by the shared owner.

In practice some landlords allow the shared owner to instruct a valuer themselves. Where a shared ownership landlord agrees that a shared owner can commission a valuation then they should ensure that all relevant information is given to them to pass on to the valuer. Assuming that the RICS registered valuer has been instructed correctly, then the transaction must proceed according to the valuation obtained.

Q3. RICS valuations expire after three months. What happens if a staircasing transaction takes longer than three months?

Most staircasing transactions not connected to a sale will complete within three months.

If there is a delay beyond the control of the parties involved Homes England’s guidance allows for a valuation to be used for a further three months. 

What if the staircasing transaction is still not able to be completed within this extended timescale?

Homes England’s revised guidance allows a further three months for it to complete.

This is solely at the landlord’s discretion. But they should consider the reason(s) for any extended delay, to ensure that discretion is operated consistently and fairly. Especially where delays are beyond the control of the shared owner. If the staircasing transaction has not been completed after this additional time then a re-valuation should be sought, or an exemption requested from Homes England to use the valuation beyond this.

Staircasing as part of a resale

An exception to the above provisions is where staircasing is taking place as part of a resale. Either where the shared owner is staircasing to 100% and selling outright (a “back-to-back staircasing” transaction). Or where the buyer wishes to buy an additional amount to the share amount that is being sold.

For resales involving staircasing Homes England’s resale valuation guidance applies. Where all parties agree Homes England’s guidance permits the RICS valuation obtained for staircasing to be used indefinitely. This is to account for the fact that some resales may encounter sale related delays. Homes England’s valuations guidance means that sales can still proceed in such circumstances. (For example, where there is a chain of sellers and buyers). 

Q4. Do shared owners have to pay valuation fees if they staircase in 1% increments?

Administration fees associated with 1% staircasing

Landlords cannot charge any valuation or administration fees for 1% staircasing transactions. If a shared owner chooses to get any legal advice or representation, or requests a RICS valuation (see below), then they will be responsible for any such fees incurred.

How do 1% staircasing valuations work?

Where the option of 1% staircasing is exercised there is no requirement for a RICS valuation. The price of the 1% staircasing is determined by the latest information available for the property type and local authority, as provided through the Land Registry’s House Price Index (HPI).

This Index provides average sales prices for different property types within each local authority as below.  

• Detached houses
• Semi-detached houses
• Terraced houses
• Flats and maisonettes

Note there is a time lag to information published by the Land Registry. Monthly information is updated usually around the mid-month point. So, for example, at the end of May 2026 the latest information available might only be for February 2026. Also it is not uncommon for published figures to be amended at a later point if more information becomes available.

Methodology

The methodology to calculate the price of a 1% staircasing transaction is set out in the lease and in the Key Information Documents that are required to be made available to buyers of shared ownership homes that have been funded by Homes England.  Below is an example of how it would be calculated assuming a request to staircase 1% is made in May 2026.

EXAMPLE SCENARIO: Initial purchase in May 2023, 1% staircasing request in May 2026

RICS valuations for 1% staircasing

The option of a RICS valuation is available to both the shared owner and landlord. (If either party is unhappy with the 1% staircasing valuation arising from the Land Registry House Price Index methodology.) The party disputing the 1% valuation (either the landlord or the shared owner) would pay for the RICS valuation. 

If there has been a more recent RICS valuation obtained this becomes the basis for calculating the cost of any future 1% staircasing. For example, using the example above, if a RICS valuation was undertaken in May 2025, the latest House Price Index for February 2026 would be applied to this and the May 2025 House Price Index figures (rather than the May 2023 figures).  

Q5. What options does a shared owner have if they disagree with or dispute the valuation?

The Staircasing Schedule of the lease sets out the relevant provisions.

Paragraph 4 of the Staircasing Schedule in all of Homes England’s model shared ownership leases states the following.

“The parties agree that the decision of the Valuer shall be final and binding on the parties to this Lease.”

Assuming that the valuation has been undertaken on the correct basis, then the RICS valuation should be used to establish the cost of any staircasing transaction. If the valuation has not been carried out on the correct basis, then a request for a re-valuation can be made. It is the responsibility of whoever commissions the RICS valuation to ensure that it is carried out on the correct basis.

The Staircasing Schedule within Homes England’s shared ownership model leases states the following:

“The Landlord shall apply to the Valuer to determine the Market Value as at the date of service of the leaseholder’s notice…“

This means that, when a shared owner requests to staircase, the landlord should commission the RICS valuation to establish the cost of the staircasing.

We are extremely grateful for the support of Homes England in creating this content.

DISCLAIMER:

This Q&A is accurate, to the best of our knowledge, as at October 2026. However guidance is updated on a regular basis, so please check Homes England’s current Capital Funding Guide, and/or seek expert legal advice if required.

The information provided on this website is for general purposes only. It is not intended to be a substitute for legal, financial, tax or other professional advice. Everyone’s situation is different so always seek expert advice on any questions you may have.

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