Buying your first home is a joyous occasion, with the keys in your hand, your name on the deed and a space that finally feels like yours. But getting there can feel like a maze, especially when you’re balancing rising house prices, tighter budgets, and the complexity of mortgage options. In today’s climate, many first-time buyers are rethinking the traditional full ownership mode. You don’t have to wait years to save a deposit or settle for less than what you need. There are realistic, accessible routes to owning your own place, and shared ownership could be one of them.
What is shared ownership and how does it work?
Shared ownership gives you a way to buy a portion of a home, this usually between 10% and 75% and then rent the part you don’t own. You’ll take out a mortgage for your share and then pay subsidised rent on the remainder to a housing provider. Over time, you can increase your share through a process known as staircasing, now allowed in increments as small as 1%. This means you can grow your ownership in manageable steps. From October 2023, annual rent increases are capped at Consumer Price Index (CPI), which offers a level of predictability that helps with long term budgeting.
Why shared ownership makes sense for Milton Keynes first-time buyers
If you live in the Milton Keynes area, shared ownership could be a strong option, especially with there are new builds in Milton Keynes being delivered under the Affordable Homes Programme 2021-26. To qualify, you household income must be under £80,000 and you will go through affordability checks to ensure the home fits your financial situation. This route opens the door to buying in well-connected growing communities where ownership may be out of reach. It can be useful for singles or couples saving towards long term security without needing a big deposit upfront. For example, a two-bedroom shared ownership home in a modern development could cost less each month in comparison to renting a similar property outright.
Be aware of local market quirks: premium charges in Milton Keynes
One issue affecting shared ownership buyers in Milton Keynes is the growing trend of “premiums” on resale homes. These are additional cash sums ranging from £10,000 to £40,000 required on top of your mortgage and deposit. Sellers or housing providers sometimes ask for this payment to bridge the gap between their valuation and the agreed sale price. Mortgage lenders, however, don’t include these premiums in the loan so you will need to pay this money upfront. It’s cost that catches buyers off-guard and should be clarified before committing to a purchase.
Regulatory changes and service-charge transparency
Recent reforms are changing how leasehold properties, including shared ownership, are managed. The Leasehold and Freehold Reform Bill aims to make homeownership fairer. It proposes banning new leasehold houses, expanding the use commonhold, capping ground rents and requires landlords to provide detailed service charge breakdowns. This is important because service charges can add hundreds of pounds a year to your costs. Under these new rules, shared ownership leaseholders will have stronger legal rights to challenge unfair charges and take disputes to the First-tier Tribunal, without landlords automatically passing legal fees onto you. This means more control over what you pay, and greater accountability from freeholders and managing agents.
