What is a Shared Ownership Mortgage in Manchester?

If you’re finding it difficult to save a large deposit or buy a property outright in Manchester, the Shared Ownership scheme could offer a more affordable path to homeownership.

Shared Ownership allows you to buy a share of a property and pay rent on the part you don’t own. It’s designed for people who can’t afford a full mortgage just yet, but still want the stability and security of owning their home.

This guide explains how Shared Ownership works in Manchester, who it’s for, and what to expect from the process. Whether you’re a first time buyer or returning to the market, it could be the step that gets you on the property ladder.

How does Shared Ownership work in Manchester?

Shared Ownership in Manchester allows you to buy a percentage of a home and pay rent on the share you do not own. You take out a mortgage on the portion you are buying, which means your deposit and monthly payments are lower than if you bought the whole property outright.

For example, if you bought a 25% share of a £200,000 home, your mortgage would be for £50,000. With a 5% deposit, you would only need to put down £2,500. You would then pay rent to the housing provider on the remaining 75%.

Most Shared Ownership homes in Manchester are leasehold, which means you own the property for a fixed number of years and pay a service charge. Rent is paid to the housing association and is usually based on the value of the share you do not own.

You can usually increase your ownership over time through a process called staircasing. In some cases, this can now be done in 1% steps, making it easier to grow your share gradually.

Who is eligible for Shared Ownership in Manchester?

Shared Ownership is designed to help people who can’t afford to buy a home outright on the open market. If you’re living in Manchester and struggling to save for a full deposit, this scheme might be an option worth exploring.

To be eligible, you’ll need to meet a few key criteria. You must be at least 18 years old, live in the UK permanently, and your total household income should be under £80,000. The property you’re buying must be your main residence. You can’t use Shared Ownership to buy a second home or a buy to let property.

The scheme is mainly aimed at first time buyers in Manchester, but it’s also open to previous homeowners who are unable to buy again. If you’ve recently gone through a relationship breakdown or have sold a property but can’t afford to get back on the ladder, you might still qualify.

If you’re not sure whether Shared Ownership is right for you, or if you’re unsure about your eligibility, our mortgage advisors in Manchester are always happy to talk it through.

Pros and Cons of Shared Ownership in Manchester

Shared Ownership in Manchester can be a helpful route onto the property ladder, especially if you’re struggling to save for a full deposit or need a more affordable way to buy a home.

Like any scheme, though, there are both benefits and limitations.

Pros of Shared Ownership

One of the biggest advantages is the reduced deposit requirement. You only need a deposit for the share you’re buying, not the full market value of the home. For many first time buyers in Manchester, this can make homeownership much more achievable.

You also have the option to increase your share over time. This process, known as staircasing, gives you the flexibility to build up your ownership as your financial situation improves. Some newer Shared Ownership properties even allow you to staircase in 1% increments.

Another key benefit is the stability the scheme can offer. Unlike private renting, you’ll have a longer-term agreement with secure tenure. As long as you keep up with your rent and mortgage payments, you can stay in the property.

Cons of Shared Ownership

While there are clear benefits, Shared Ownership does come with some limitations. One of the most common is service charges and ground rent, which you’ll need to pay in full, regardless of how much of the property you own.

You’ll also need permission from the housing provider to make structural changes to the property. This can limit your flexibility if you’re looking to renovate or extend your home.

Selling a Shared Ownership property can be more complex too. If you don’t own 100% of the home, you’ll typically need to offer it back to the housing association before selling it on the open market.

Date Last Edited: June 19, 2025