“Is shared ownership worth it? In 2008 my shared ownership flat was valued at £205,000. Since then it’s cost me over £350,000 to staircase to 100%. How is this affordable housing?”
Why I got into shared ownership
Initially, I didn’t intend on doing shared ownership. But when I was given notice on my private rental, my options were to move further out of central London and pay more rent, or do the shared ownership scheme. I wanted a secure tenancy. At the time shared ownership provided that, plus the opportunity to get on the housing ladder.
As the years went by, selling a one-bedroom flat in a mixed tenure development became an impossible task. Not being able to sell to another shared ownership owner, or sublet the property, meant staircasing to 100% became my best option.
Knowing what I know now, I wouldn’t have staircased to 80%
At first, I could only afford staircasing to 80%. With hindsight, I would have kept my share at 35%. A smaller share would have been easier to sell to another shared ownership tenant so I could buy a property on the open market.
However, the 80% share was too high and too expensive for a first-time shared ownership buyer. Additionally, issues with antisocial behaviour and maintenance made it difficult on the open market. Plus changes in the housing market meant the demand for one-bedroom flats went down.
I spent five years trying to sell my flat
Initially, I had to give the housing association the chance to sell my share to another shared ownership tenant. After two months I could put it on the open market. I originally put it up for sale in 2019, and tried to sell it via both the housing association and various estate agents up until 2024.
During that time I had to pay for multiple valuations (as they expire after 3 months), legal fees and also the housing association’s admin fees.
In the end, although my flat had an 80% staircasing restriction when I bought my initial share, the housing association allowed me to staircase to 100%.
Is shared ownership worth it? My flat would have been far cheaper on the open market
It would have been cheaper if I’d bought outright on the open market in the first place. My flat was worth £205,000 in 2008. But it has cost me a lot more than that to get to full home ownership.
| 2008 – Staircased to 80% (market value £360,000) | £71,750 | £71,750 |
| 2017 – Staircased to 100% (market value £355,000) | £162,000 | £233,750 |
| 2025 – Staircased to 100% (market value £355,000) | £71,000 | £304,750 |
| SDLT on staircasing over 80% | £1,220 | £305,970 |
| Legal valuation, valuation and admin fees (£460 + £584 + £1,152) | £2,196 | £308,166 |
| 2008-2025 – Rent (approximate estimation) | £50,000 | £358,16 |
The ‘current market’ approach to staircasing also means that I’ve paid more in mortgage interest than if I’d been able to buy my home outright at £205,000.
I’ve given up trying to sell my flat for now
In My SO Home: No. 32 I explained why I don’t think mixed developments work. My experience is that private buyers don’t want to buy a flat in a mixed development .
For now this is my main residence. If market conditions change I will consider selling again.
How I’d improve shared ownership
The shared ownership scheme could definitely work better for shared owners. Landlords should purchase properties back – regardless of the % share owned – to sell on to new shared ownership buyers. This would enable existing owners to move on when they can afford to. And it would maintain existing social housing stock to allow other people to get on the housing ladder.
When it comes to staircasing and selling it would be fairer to allocate costs between the landlord and shared owner according to the % share owned.
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