Shared Ownership Deposit: How Much Do You Need to Save?
A clear guide to deposit requirements for shared ownership buyers
One of the biggest advantages of shared ownership is the smaller deposit compared to buying on the open market. But exactly how much do you need? This guide breaks down the deposit calculation, shows real examples, and explains your options.
How the Shared Ownership Deposit Is Calculated
With shared ownership, your deposit is based on the share you’re buying, not the full property price. This is what makes it so much more accessible:
Deposit = 5–10% of your share of the property
Example
For a £300,000 property where you’re buying a 25% share:
| Item | Full Ownership | Shared Ownership (25%) |
|---|---|---|
| Property value | £300,000 | £300,000 |
| Your share | £300,000 (100%) | £75,000 (25%) |
| Deposit at 5% | £15,000 | £3,750 |
| Deposit at 10% | £30,000 | £7,500 |
That’s a £11,250 saving on the deposit alone at 5%, or £22,500 at 10%.
Minimum Deposit by Share Percentage
Here’s how deposit requirements look across different share sizes for a £300,000 property:
| Share % | Share Value | 5% Deposit | 10% Deposit |
|---|---|---|---|
| 10% | £30,000 | £1,500 | £3,000 |
| 25% | £75,000 | £3,750 | £7,500 |
| 40% | £120,000 | £6,000 | £12,000 |
| 50% | £150,000 | £7,500 | £15,000 |
| 75% | £225,000 | £11,250 | £22,500 |
Under the new model shared ownership (introduced 2021 in England), you can buy as little as a 10% share, meaning deposits can start from as low as £1,500 on a £300,000 property.
Does a Larger Deposit Help?
Yes, in several ways:
- Lower mortgage payments — borrowing less means paying less each month
- Better mortgage rates — lenders often offer better rates at lower loan-to-value (LTV) ratios
- Stronger application — a larger deposit can improve your chances of mortgage approval
- Lower total interest — you’ll pay less interest over the life of the mortgage
However, don’t stretch yourself so thin that you can’t cover other buying costs (solicitor fees, surveys, moving costs). A good rule is to budget an additional £3,000–£5,000 for other purchase costs on top of your deposit.
Other Costs to Budget For
Your deposit isn’t the only upfront cost. You’ll also need to cover:
| Cost | Typical Range |
|---|---|
| Solicitor/conveyancer fees | £1,000 – £2,000 |
| Mortgage arrangement fee | £0 – £1,500 |
| Survey/valuation | £250 – £600 |
| Stamp duty (if applicable) | Often £0 for first-time buyers on properties under £300,000 |
| Moving costs | £500 – £1,500 |
| Total additional costs | £2,000 – £5,000+ |
For a full breakdown, see our guide on costs of buying a shared ownership home.
How to Save for a Shared Ownership Deposit
Lifetime ISA (LISA)
Save up to £4,000 per year and receive a 25% government bonus (up to £1,000/year). You must be 18–39 to open one. The funds must be used for a first home worth up to £450,000.
Regular Savings Accounts
Set up a standing order to a savings account on payday. Even £200/month adds up to £2,400 in a year — enough for a 5% deposit on a 25% share of a £200,000 property.
Help from Family
Some first-time buyers receive help from family members. Lenders accept gifted deposits provided the family member signs a declaration confirming the money is a gift, not a loan.
Reduce Outgoings
Review subscriptions, switch energy providers, and cut discretionary spending. Small savings compound quickly when you have a specific target.
Frequently Asked Questions
Can I buy shared ownership with no deposit?
No — all shared ownership purchases require at least a minimum deposit (typically 5% of your share). Some housing associations may accept lower amounts in specific circumstances, but 5% is the standard minimum.
Do I need a deposit for the full property price?
No. The deposit is based only on the share you’re buying. If you’re buying 25% of a £300,000 property (£75,000), a 5% deposit is just £3,750 — not the £15,000 it would be for the full property price.
Can I use a Lifetime ISA for shared ownership?
Yes. A LISA can be used for shared ownership, provided the property price is £450,000 or less. You’ll receive a 25% bonus on your savings.
Use our shared ownership calculator to see how different deposit sizes affect your monthly payments.