The value of shared ownership cannot be measured by the deposit alone. Reducing the amount needed upfront may make a purchase possible, but the more important question is whether the mortgage, rent and other property costs will remain affordable throughout the borrower’s ownership.
This issue has become increasingly relevant as the profile of potential homeowners continues to broaden. Foreign nationals living and working in the UK are a good example. Many have stable careers and sufficient income to support a mortgage, yet a short UK residency history and limited time to build savings can restrict the routes open to them.
Bringing foreign national and shared ownership criteria together may help overcome some of these access issues. It also strengthens the case for advice that examines the whole arrangement, as the starting share, rent on the unsold portion, service charges, lease terms and future intentions will all influence suitability.
Assessing these elements collectively provides a clearer view of the monthly commitment and the income left after essential living expenses and existing debts have been met. This is particularly important when deciding how much of the property the client should purchase at the outset.
A smaller stake may reduce both the mortgage and deposit required, but it leaves the customer paying rent on a larger unsold portion. The Chartered Institute of Housing’s (CIH) September 2026 report, Shared ownership in England: Assessing the tenure’s evolving role, identifies this greater rental liability as a factor for buyers entering with a lower share. The right starting point will therefore depend on the client’s wider finances and plans, rather than simply the lowest entry cost.
Clients may understand the broad principle of buying one part of a property and renting the remainder, but they may be less familiar with how rent is reviewed, what service charges cover or where responsibility for repairs sits. Clear explanations at the outset can establish realistic expectations and reduce the risk of unexpected costs later.
Affordability must also account for change. Earnings and personal circumstances may shift, while rent and other property-related charges can rise. The CIH report highlights the move towards assessments based on individual circumstances and the surplus income left after housing and essential living costs have been paid. This places the focus on whether payments are likely to remain manageable, rather than relying on a single calculation at the point of purchase.
Clients’ longer-term intentions form another part of this assessment. Some will plan to increase their stake through staircasing, while others may prefer to retain their original share. Staircasing will involve valuation, legal and landlord administration fees, depending on the scheme and lease. Explaining these requirements can help borrowers form a realistic view of the cost of increasing their ownership.
Resale terms also warrant attention. A property may be subject to a nomination period during which the housing provider can seek a buyer, while the lease and sales process can differ between newer homes and those created under earlier models. Reviewing these details before purchase allows the client to understand their options if their needs change.
These considerations do not lessen the positive role this form of ownership can play. The CIH report cites a 2025 independent study commissioned by Leeds Building Society, which compared shared ownership and private rental costs across 294 English local authority areas. It found that shared ownership was more affordable in 77% of areas during the first year, increasing to 79% by year five and 93% by year ten.
For eligible foreign nationals, the value of broader mortgage criteria lies not simply in providing access, but in allowing a strong case to be assessed on the applicant’s current financial position rather than the length of their UK residency. Combined with individual underwriting and a clear understanding of the full ownership costs, this can open a credible route to buying a home.
Shared ownership will not be right for every client, but suitable applicants should not be excluded because standard criteria fail to reflect their circumstances. This is where informed advice and a more flexible lending approach can make a meaningful difference.
Samantha Ward, Commercial Director at Hanley Economic Building Society
Source
Chartered Institute of Housing, Shared ownership in England: Assessing the tenure’s evolving role, September 2026,
