Staircasing

Staircasing is a key feature of shared ownership schemes in the UK property market, allowing homeowners to increase their equity stake in a property over time. Shared ownership is a government-backed initiative designed to make homeownership more accessible, particularly for first-time buyers who may struggle to afford a full mortgage.

Under a shared ownership scheme, buyers initially purchase a percentage of the property (usually between 25% and 75%) and pay rent on the remaining portion owned by a housing association. Staircasing allows these buyers to purchase additional shares in their property as their financial situation improves, eventually enabling them to own the property outright.

Each time a buyer staircases, the amount of rent they pay decreases proportionately to their increased ownership. However, the cost of additional shares is based on the current market value of the property, which means that if the property’s value has increased since the initial purchase, the cost of staircasing may be higher.

Staircasing is a valuable option for shared ownership buyers in the UK property market, offering a pathway to full homeownership. By gradually increasing their stake in a property, buyers can reduce their rental payments and build equity over time. Understanding the staircasing process, its benefits, and associated costs can help shared ownership buyers make informed decisions about their property investments.