Staircasing – how to own more of your shared home

To buy a shared ownership property, according to gov.uk, both of the following must apply

• your household income is £80,000 a year or less (£90,000 a year or less in London) 
• you cannot afford all of the deposit and mortgage payments for a home that meets your need

And one of the following must be true: 

• You’re a first-time buyer 
• you used to own a home but cannot afford to buy one now 
• you’re forming a new household – for example, after a relationship breakdown 
• you’re an existing shared owner, and you want to move 
• you own a home and want to move but cannot afford a new home that meets your needs 
• your household income must be less than £80k, or under £90k if you live in London 

Shared ownership is also known as “part buy, part rent”. You buy a portion of the property—sometimes as little as 25%—while the remainder is rented. 

• Deposit: Typically between 5% and 10% of the share you are buying 
• Rent: Calculated up to 3% of the remaining share (e.g. the 75% you don’t own). According to gov.uk Most landlords charge 2.75%. 

This arrangement usually works out more affordable than renting outright. 

The Staircasing Process 

Staircasing lets you increase your equity in your home by buying a larger share, which reduces your rent proportionally. 

• Minimum additional purchase: Usually 10%, though if your house was purchased after 1st  April 2021 some housing associations may allow as little as 1% for the first 15 years. 
• Many older leases (Pre April 2021) limit you to a maximum of three staircasing events to reach 100% ownership. However, properties under the new government-backed model generally have no limit on the number of times you can staircase but check this with your landlord. 

The Positives of Staircasing 

• Small deposit required, based on the share purchased 
• Reduced rent each time you staircase 
• Mortgage plus rent can be cheaper than renting alone 
• Builds property equity and provides a more secure form of renting 
• 100% ownership gives greater security and the option to buy the freehold (if available) 
• Full ownership means no rent payments (though ground rent and service charges may still apply) 
• Allows you to sell on the open market once fully owned 

The Downsides of Staircasing

• Falling behind on rent could put your property at risk 
• Some housing associations allow only three staircasing events, so careful planning is needed 
• Full service charges for communal areas, including roofs, still apply even with full ownership 
• Costs for RICS valuation, solicitor’s fees, and mortgage fees with each staircasing step 
• Stamp Duty may apply once you reach 80% ownership 
• If you own less than 100%, the housing association must find a buyer for your share 
• Some housing associations do not allow you to purchase the freehold, even at 100% ownership 

When to Staircase 

Before staircasing, make sure you have: 

• Sufficient savings 
• Cleared any arrears in rent 
• Arranged a RICS shared ownership valuation 

Even if your housing association recommends a valuer from their approved list, this is not compulsory. It’s advisable to obtain a few quotes to ensure good value. 

If you’ve made home improvements, the valuation should reflect them. Housing associations may also require a valuation based on the property’s condition when you first moved in. Experienced RICS valuers, like Morgan Sloane, can provide a secondary valuation excluding home improvements if required. 

What a Valuation Includes 

• Inspection by a surveyor with local market knowledge 
• Overview of the property, construction, location, and accommodation 
• Assessment of the property’s general condition 
• Comparable nearby property sales 
• Detailed valuation report including assumptions and evidence 

We’re Here to Help You Own More of Your Home 

Staircasing is a valuable step on the property ladder for first-time buyers. If you have saved funds, or your income has improved, you may be ready for the next staircasing step. Morgan Sloane can provide professional valuations and advice to help you increase your ownership. 

Contact us today