# Shared Ownership vs Help to Buy — which UK housing scheme works for you?

> Compare · Last reviewed 26 May 2026

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## Quick answer

Shared Ownership lets you buy a share of a home (usually 25%–75%) and pay rent on the rest. Help to Buy was a government equity loan that contributed up to 20% (40% in London) of the purchase price — now closed to new applicants in England.

## Skip this if

Skip this comparison if you need a live quote or a personal recommendation. It is a criteria table, not a product ranking — confirm today's terms with the provider before you apply.

Both schemes existed to help first-time buyers in England. Shared Ownership remains open. Help to Buy: Equity Loan closed to new applications on 31 October 2022 — but many people still hold one. This comparison helps you understand the two if you're choosing between them or already in one.

## Shared Ownership vs Help to Buy (legacy)

| Criterion | Shared Ownership | Help to Buy (legacy) |
| --- | --- | --- |
| Availability | Open to new buyers in England (and similar schemes in Scotland, Wales, NI) | Closed to new applicants in England since Oct 2022 |
| What you buy | A 25%–75% share; rent on the rest | 100% of the home, part-funded by a government equity loan |
| Deposit base | Deposit on the share you buy | Deposit on the full purchase price |
| Monthly costs | Mortgage + rent + service charge | Mortgage + service charge (loan interest-free for first 5 years) |
| Staircasing / repayment | Buy more shares over time (subject to scheme rules) | Repay equity loan as % of current market value |
| Resale | Provider usually has nomination rights for a period | Open market sale; loan repaid as % of sale price |
| Where used today | Active scheme — new homes from approved providers | Existing borrowers manage their loan; some can extend interest-only protection |

## When Shared Ownership suits

- You can't afford a full mortgage in your area
- You're a first-time buyer or moving from one Shared Ownership home to another
- You meet the household income cap (currently £80,000 outside London / £90,000 in London)
- You're happy with leasehold / rent + mortgage combined

## When Help to Buy (legacy) suits

- You already have a Help to Buy equity loan and are deciding when to repay
- You're considering remortgaging or staircasing out
- You want to understand how the loan is recalculated on sale
- You're approaching the end of the interest-free period

## Frequently asked questions

### Can I get a Help to Buy equity loan now?

No — the scheme closed to new applicants in England on 31 October 2022. The Welsh scheme has its own timeline; check current Welsh Government guidance.

### What is staircasing?

Buying additional shares in your Shared Ownership home — usually in tranches of at least 10% (or 1% under newer-model leases) — until you own 100% (where allowed).

### Do I pay rent on a Help to Buy equity loan?

No, but you pay interest after the first five years (1.75% in year 6, then rising with CPI + 2%).

## Sources

- [GOV.UK — Shared Ownership](https://www.gov.uk/shared-ownership-scheme)
- [GOV.UK — Help to Buy: Equity Loan](https://www.gov.uk/help-to-buy-equity-loan)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.