Co-ownership Homes: How Shared Ownership Works and What You Need to Know

When you buy a co-ownership home, a property bought and owned by two or more people under a legal agreement. Also known as shared ownership, it’s a way to get on the property ladder without paying full price — but it’s not as simple as splitting rent. You’re not just buying a house. You’re buying a legal relationship with someone else, and that changes everything.

There are two main ways to hold co-ownership: joint tenancy, a form where owners have equal shares and the right of survivorship — if one person dies, their share automatically goes to the others, and tenancy in common, a setup where each owner can hold different shares and leave their portion to anyone in their will. Most first-time buyers in the UK choose tenancy in common because it’s more flexible. But if you’re buying with a partner and plan to stay together long-term, joint tenancy might make more sense. The difference isn’t just legal jargon — it affects who gets the house if you split up, or if someone passes away.

Co-ownership homes often come with extra costs you won’t find in full ownership. You’ll pay rent on the part you don’t own, plus service charges, maintenance fees, and sometimes restrictions on renovations. Some schemes limit how much equity you can buy back each year. And if your co-owner falls behind on payments, you could be on the hook. It’s not a free pass to homeownership — it’s a structured path with rules.

People choose co-ownership because they can’t afford a full mortgage, or they want to live in a city where prices are out of reach. But it’s not for everyone. If you value total control over your home, or plan to move often, this model can feel like a cage. You need clear agreements upfront — written, signed, and reviewed by a solicitor. No handshake deals. No "we’ll figure it out later." The posts below break down real cases: what went wrong, what worked, and how to avoid the biggest traps.