Right to Shared Ownership — What Housing Association Tenants Need to Know

What Is the Right to Shared Ownership?

The **Right to Shared Ownership (RtSO)** is a scheme introduced by the government in 2021 as part of the new model shared ownership reforms. It gives eligible tenants renting from a housing association the right to buy a share in their current home — effectively converting their tenancy into a shared ownership arrangement — without needing to go through the standard shared ownership application process.

This is distinct from the old Right to Buy scheme (which applied to local authority tenants) and the Preserved Right to Buy. RtSO is specifically designed for tenants of properties funded through the 2021–26 Affordable Homes Programme.

Who Is Eligible?

To exercise the Right to Shared Ownership, a tenant must meet all of the following criteria:

• **Tenancy type:** The tenant must be an assured tenant or assured shorthold tenant of a housing association.
• **Tenancy duration:** The tenant must have been a social housing tenant for at least three years (this does not need to be continuous with the same landlord — previous social tenancies count).
• **Property eligibility:** The property must be a newly built home delivered under the 2021–26 Affordable Homes Programme and designated as RtSO-eligible. Not all housing association properties qualify — the housing association will be able to confirm whether a property is within scope.
• **Income eligibility:** Household income must be under **£80,000** (or **£90,000 in London**).
• **Right to reside:** The tenant must have the right to reside in the UK and be able to take on a mortgage.
• **No other ownership:** The tenant must not currently own, or have a financial interest in, another residential property.

Military personnel are also eligible and can benefit from a priority period before the scheme opens more broadly.

How Much Share Can You Buy?

Under RtSO, the minimum initial share you can purchase is **10%** of the full market value of the property. There is no upper limit — you can buy any share up to 75% initially, subject to mortgage affordability.

After purchasing your initial share, you staircase in the normal way, with the new model rules applying (1% annual tranches for the first 15 years, then 10% minimum tranches thereafter).

The Process

1. **Check eligibility.** Confirm with your housing association that your home is designated as RtSO-eligible and that you meet the qualifying criteria.

2. **Obtain a RICS valuation.** The purchase price of your share is based on the current open market value of the property.

3. **Apply for a mortgage.** You will need a shared ownership mortgage to fund your share purchase (unless purchasing entirely by cash, which is rare at initial purchase).

4. **Instruct a solicitor.** The legal process is the same as a standard shared ownership purchase — your solicitor will draft or review the new shared ownership lease.

5. **Complete the purchase.** On completion, your tenancy ends and your shared ownership lease begins.

Key Differences from Standard Shared Ownership

RtSO gives tenants a powerful route into homeownership for a property they already know and live in. Use our [Shared Ownership Calculator](/shared-ownership-calculator) to model what your monthly costs would look like after purchasing your initial share and plan your staircasing journey from there.