Housing Associations were originally set up to provide low cost rented accommodation. However with the increasing need for affordable housing, they now offer shared ownership schemes to a large cross section of the population to buy their first home. However with the current cost of housing, there may be a waiting list.

Shared Ownership is the most popular scheme. You buy a share in the property of between 25% and 75%. You then take out a mortgage for the portion you own and pay a small rent for the portion that the Housing Association, or your local housing scheme, owns. You can either buy the Housing Association property that you currently live in, or a new property within a budget they set. You have the option of buying larger shares in your property as you go, which is known as ‘staircasing’.

Provided you have a reasonable credit history, you should not have problems finding a mortgage. Lenders may have products tailored to your specific circumstances and may be willing to lend 100% of your portion.

Taking out a shared ownership mortgage can help you to avoid paying stamp duty. Stamp duty is charged on all properties bought for more than £60,000. If your share of your property means that you are taking out a mortgage for less than £60,000, you will not be liable for stamp duty. Even if you were to then increase your share, you would not need to pay stamp duty.

Due to a third party being involved in thistype of house purchase, it is important to take legal advice. To apply for shared ownership you ask your local social landlord for details of the scheme in your area and an application form. This information will be available in your local Citizens Advice Bureau or housing advice centre.

Shared ownership schemes can be found in many places: Click here for a list