The headline appeal of Shared Ownership is the lower deposit and mortgage. But there are ongoing costs to factor in — most importantly rent on the share you don't own — plus service charges and, sometimes, stamp duty. Here's the full picture so there are no surprises.
This is the cost people most often underestimate. As well as your mortgage, you pay rent on the share the landlord still owns. Most landlords charge 2.75% of the value of their share per year. As you staircase and buy more, the rent falls; reach 100% (where your lease allows) and it stops altogether.
You'll usually pay a service charge towards the upkeep of communal areas and the building (and a management/sinking fund). The amount varies widely by development, so ask for the current figure and recent history before you buy.
For homes under the Affordable Homes Programme 2021–2026, the landlord covers repair and maintenance costs for the first 10 years (up to a limit, with exceptions). On older leases, you may be responsible for repairs from the start — check which applies.
Where your lease charges ground rent, it's usually a small fixed amount, and many newer leases charge little or none. The exact position is set by your lease, so check it.
When you buy, you can either make a one-off "market value election" and pay Stamp Duty as if you'd bought the whole property, or pay in stages. If you pay in stages, no further SDLT is due until you own more than 80% of the property. SDLT rules and thresholds change, so confirm the current position with your conveyancer.
Before committing, budget for: deposit + mortgage (on your share), rent (≈2.75% of the landlord's share), service charge, any ground rent, repairs (depending on the lease), and SDLT if applicable — plus buying costs like valuation and legal fees. See also who can buy and the deposit you need and the overall what is Shared Ownership guide.
It's also worth checking whether the home is in a Designated Protected Area, which affects whether you can ever staircase to 100% and stop paying rent — check an address here.
This is general guidance, not financial advice.
Accurate as of June 2026.
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