Could Staircasing Work for You?

As a shared owner, you may have heard about staircasing but wondered whether it’s the right option for you.

Staircasing is the process of buying additional shares in your home over time. For many shared owners, it’s an opportunity to increase their ownership gradually, reduce the rent they pay on the portion they don’t own, and move closer to full homeownership.

While staircasing isn’t the right choice for everyone, it can offer significant benefits depending on your circumstances, goals and finances.

What Are the Benefits of Staircasing?

Reduce the Rent You Pay

Shared ownership remains most popular in regions where affordability pressures are highest. One of the biggest reasons shared owners choose to staircase is that buying a larger share usually means paying less rent.

That’s because rent is charged on the share of the property owned by the housing provider. As your ownership share increases, the rented share decreases, resulting in lower rent payments.

This can help make your monthly housing costs more manageable over the long term.

Increase Your Share of Homeownership

Shared ownership is designed to help people get onto the property ladder sooner. Staircasing allows you to continue that journey when the time is right.

By purchasing additional shares, you build greater ownership in your home without needing to move. For many residents, this offers flexibility and allows them to increase their investment in a property they already love.

Benefit From Future Property Value Growth

As you increase your ownership share, you benefit more from any future increase in the value of your home.

While property values can go up or down and are never guaranteed, owning a larger share means a greater proportion of any future equity belongs to you.

Move Closer to Full Ownership

Many shared owners have the option to staircase all the way to 100% ownership, depending on the terms of their lease.

For some, this is an important long-term goal and a key milestone on the path to owning their home outright.

Even if 100% ownership isn’t your immediate aim, purchasing additional shares can help you progress towards it over time.

Stay in a Home You Love

If your circumstances have changed since you first bought your shared ownership property, staircasing could help you increase your stake in your current home rather than looking for somewhere new.

For residents who enjoy their neighbourhood, have built local connections or simply want to avoid the costs and disruption of moving, staircasing can be an attractive option.

Could Staircasing Be Right for You?

There is no one-size-fits-all answer. Staircasing may be worth considering if:

• Your income has increased since you purchased your home.
• You’ve built up savings that could contribute towards buying a larger share.
• You’re looking for ways to reduce the rent you pay.
• You’re thinking about your longer-term homeownership goals.
• You’d like to increase your investment in your current property.

Before making any decisions, it’s important to understand the costs involved, including valuations, legal fees and any mortgage-related expenses.

Things to Consider Before Staircasing

Despite the introduction of 10% initial shares, staircasing activity has continued to shift towards larger purchases rather than smaller incremental purchases

As with any property transaction, it’s worth taking some time to review your finances and future plans.

Ask yourself:

• How much additional share would I like to purchase?
• Can I fund the purchase through savings, a mortgage, or a combination of both?
• How might my monthly costs change?
• What are my long-term plans for the property?

Answering these questions can help you determine whether now is the right time to staircase.

Take the Next Step

If you’re considering staircasing, our team is here to help you understand your options and explain the process.

To learn more, visit our Staircasing Guide where you’ll find information about eligibility, valuations, costs and the steps involved in purchasing additional shares of your home.

Staircasing isn’t a decision to rush, but for many shared owners it can be a positive step towards greater homeownership and increased financial security.