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Buying a share in your home

The Social HomeBuy scheme gives you the chance to buy your housing association or council home through ‘shared ownership’. Your landlord may also offer you a different home through the scheme.

You'll buy a share of your home and pay rent on the remaining share.

The share must be at least 25 per cent, but you can buy more or even the whole property if you can afford it. You’ll get a discount so you won’t have to pay the full ‘market value’ (how much your home could fetch on the housing market).

As well as the cost of your share, you’ll need to think about the rent you’ll need to pay on your landlord’s share. They can charge you up to 3 per cent of the market value of their share of your home.

Example of rent paid on your landlord's share

Your home is worth £240,000 and you buy a 50 per cent share. Your landlord charges you 3 per cent rent on their 50 per cent share. Three per cent of £120,000 is £3,600 per year. This works out at £300 per month for you to pay in rent.

What discount can you get with Social HomeBuy

You’ll get a discount between £9,000 and £16,000 on the value of your home when you use Social HomeBuy.

The discount depends on where your home is and the size of the share you’re buying. If you want to buy another share in your home later on, you’ll get a discount on this too.

Example of how the discount works when you buy a share

Your home is worth £200,000. You qualify for a £16,000 discount and you want to buy 50 per cent of your home (£100,000). So you’ll get 50 per cent of the discount, which is £8,000. This means you’ll only need to pay £92,000 to buy your 50 per cent share.

If you want to sell your share of your home

If you want to sell your share within five years of buying it, you’ll need to pay back some or all of the discount you got. The sooner you sell, the more discount you will have to pay back.

You may have to offer your landlord the chance to buy your home back at ‘market value’ (how much it could fetch on the housing market). Your landlord may also have the right to suggest a buyer for your share.

When you can use Social HomeBuy

You qualify for Social HomeBuy if:

• you’re a ‘secure’ or ‘assured’ council or housing association tenant (find out what tenancy you’ve got by looking at your tenancy agreement)
• your landlord is taking part in the scheme
• you live in an qualifying property (some types of homes aren’t covered by the scheme)
• you’ve been a social tenant for at least five years

You can count previous public sector tenancies, even if they weren’t one after another, to make up the five years you need to qualify. Public sector landlords include councils, housing associations and public bodies like an NHS trust.

Not all local councils or housing associations have joined the Social HomeBuy scheme. You’ll need to check with your landlord if they belong to the scheme and whether your home is included.

• Find your housing association Opens new window

When you can't use Social HomeBuy

You can’t buy a share in your home using Social HomeBuy if you:

• have an ‘assured shorthold’ tenancy with a housing association (ie a ‘starter tenancy’)
• are being made bankrupt
• have a court order saying you must leave your home
• are facing legal action for rent arrears, anti-social behaviour or for breaking your tenancy agreement

How to apply for the Social HomeBuy scheme

You’ll need to apply directly to your landlord (your local council or your housing association). Contact them and ask for the application forms.

Your landlord will look at your income, spending and any loans or debts you’re paying off to help decide what share you can afford. They’ll bear in mind the discount you’ll get when they look at your finances.

• A to Z of local councils

• Find your housing association Opens new window

Other low cost ways you can buy your home

Social HomeBuy might be for you if you can’t afford the Right to Buy or Right to Acquire schemes or if your home doesn’t qualify for Right to Acquire. These schemes help you buy your council or housing association home at a discounted price.

Find out more and see if you qualify by following the links below.

• Buying your council home - the Right to Buy scheme

• Buying your housing association home - the Right to Acquire scheme

More useful links

• Managing money (money, tax and benefits section)

• Benefits and financial support (money, tax and benefits section)

Useful contacts

• Home and community contacts