What is shared/low-cost ownership?

This section gives a general description of shared ownership and low-cost home ownership.

Shared ownership and low-cost home-ownership schemes have been set up to help people who cannot afford to buy a home outright, either because they do not have enough money for a deposit or because they are unable to afford full mortgage repayments. Most schemes are set up and managed by registered social landlords. They cater for the needs of first-time buyers, with priority for an offer of a shared ownership or low-cost home-ownership scheme often being given to tenants of a registered social landlord (eg housing associations) or local authority tenants.

Shared ownership schemes involve an applicant buying a share in a property, with a registered social landlord owning the remainder. The applicant usually pays rent on the part of the property owned by the registered social landlord. Low-cost home-ownership schemes usually involve applicants being offered a loan or grant to help them buy a property on the open market.