Mythbusters: You’ll never own your home outright and will have to pay rent forever

When it comes to Shared Ownership, one of the biggest misconceptions people have is that you’ll always be stuck paying rent and never be able to fully own your home. This myth can be off-putting for potential buyers, especially those who hope to one day own their home outright. But here’s the truth: Shared Ownership does offer a clear pathway to owning 100% of your home when you staircase — and once you do, the rent payments stop for good. Let’s break it down and debunk this myth once and for all.

Shared Ownership: A Path to Full Homeownership

Depending on your lease, you can own up to 100% of your Shared Ownership home. The process that makes this possible is called staircasing. It allows you to buy more shares in your home over time, increasing your ownership percentage. And when you reach 100% ownership? You become the full homeowner—just like any traditional buyer—and the rent disappears completely.

Please note that service charges are separate from rent and homeowners will still have to pay these.

Staircasing can reap good rewards for the future. According to a 2024 report by Savills, staircasing is the ability to accrue extra equity also helps buyers springboard onto their next home, potentially moving from a Shared Ownership home to a full ownership home, even if they hadn’t staircased to 100%.

How Does Staircasing Work?

Staircasing is a straightforward process that happens in stages:

Why Staircase to Full Ownership?

There are a lot of benefits to staircasing to full ownership:

• No more rent: Once you own 100% of your home, rent is no longer required, and you only need to manage your mortgage and associated costs.
• Full homeownership rights: Just like any other homeowner, you have the freedom to sell, modify, or make decisions about the property, subject to any local regulations.
• Building equity: As a full homeowner, any increase in the property’s value will benefit you entirely, making it a smart long-term investment.

If your plan is to stay in the home long-term, staircasing can be a great move, but be aware that if you’re looking to sell your share in the future, higher shares can be harder to sell to the first time buyer market. 

You Can Staircase at Your Own Pace

One of the key benefits of Shared Ownership is its flexibility. There’s no set timeline for when you need to staircase—you can do it at a pace that suits you. You lease may stipulate how many times you staircase and by how much so it is always recommended to read this before applying.

Furthermore, changes by the government to a new shared ownership lease type provides extra flexibility in enabling share purchases of as little as 1%. For the first 15 years that you own the home, you may purchase 1% share each year, with the rent reducing accordingly. Check your lease to see if you are eligible.

What About the Rent You Pay While You Own a Share?

This is an important question that comes up often. While you’re staircasing, you do pay rent on the portion of the home you don’t own. The rent is typically below the market rate, making it more affordable than renting privately, but it is always recommended to consider all costs before purchasing a property.  

As you staircase and increase your share, the amount of rent you pay decreases, until it’s eventually eliminated when you own 100%.

Just keep in mind that rent can be subject to annual increases—so it’s worth checking out our rent review guide for more info on that. Services charges are separate so keep this in mind!

The Bottom Line: Shared Ownership = Full Homeownership Potential

Shared Ownership isn’t about being stuck renting forever. It’s about giving you a flexible and affordable route to full homeownership. Through staircasing, you can buy more of your home over time until you own 100%, at which point rent is no longer required. It’s an ideal solution for those looking to get onto the property ladder and work towards owning their home in a way that suits their financial situation.

Ready to start your journey towards full homeownership? Contact us today to learn more about staircasing and how you can own your Shared Ownership home outright.