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