Shared ownership is one of the most effective ways to get on the property ladder in expensive areas of the UK, allowing you to buy a 25-75% share of a property and pay reduced rent on the remainder. But for many shared ownership residents, the goal is full ownership — and this is achieved through a process called staircasing. Staircasing allows you to purchase additional shares in your home, reducing the rent you pay and eventually enabling you to staircase to 100% ownership. However, the process involves costs beyond the share price, and there are restrictions on when and how you can staircase. Understanding these before you buy is essential for making shared ownership work for you. Our full shared ownership guide covers the basics.
How the Staircasing Process Works
Staircasing allows you to buy additional shares in your shared ownership property, typically in increments of 10% or more, until you own 100% of the property. The price you pay for additional shares is based on the current market value of your property, not the value when you first purchased. If your property has increased in value, you will pay more for additional shares than you would have when you first bought — this is one of the key risks of shared ownership staircasing. Most housing associations allow staircasing at any time after the minimum initial period (usually one to five years), and you can staircase in stages or all at once depending on your finances. You will need a separate mortgage for each staircasing share purchase above 75% in most cases.
Costs Involved in Staircasing
Beyond the share price, staircasing involves several additional costs that can add thousands to the process. Survey and valuation fees (typically £300-600) are required to establish the current market value of your property. Legal fees (typically £500-1,500) cover the conveyancing work for the share transfer. Your mortgage arrangement fees apply if you are borrowing to fund the additional share. Stamp duty may be payable on staircasing purchases above the SDLT threshold (currently £125,000 for residential property, or £300,000 for eligible first-time buyers), though first-time buyers may have some relief. Finally, rent reduction costs: as you staircase, your rent decreases proportionally, but in some cases housing associations charge an administrative fee for recalculating rent. Budget for £1,500-3,000 in addition to the share purchase price.
- Valuation fee: £300-600
- Legal fees: £500-1,500
- Mortgage fees: depends on lender and product
- SDLT: may apply above the £125,000 threshold
Should You Staircase to 100%?
Owning 100% of your shared ownership property means you no longer pay rent to the housing association, have full control over the property, and can sell it on the open market at full market value. However, staircasing to 100% is not always the right financial decision. Consider: if property values have risen significantly, buying the remaining shares at market value may be expensive; if you plan to move within 5-10 years, the transaction costs of staircasing may not be recouped; if you can achieve a higher return by investing the staircasing money elsewhere, this may be better; and if your housing association imposes resale restrictions or has a cap on staircasing, full ownership may not be possible. Many shared owners choose to staircase to around 75-80% and enjoy significantly reduced rent while retaining flexibility to sell through the housing association's resale process.
- shared ownership
- staircasing
- housing
- mortgage
- first home