One of the biggest advantages of shared ownership is that you don’t have to stay at your initial share forever. As your finances grow, you can buy more of your home over time through a process called staircasing. This means gradually increasing the percentage you own until, if you choose, you reach 100% ownership.
But staircasing isn’t automatic, and it isn’t always the right move at every stage. Here’s everything you need to know about how it works, what it costs, and how to decide whether it’s the right step for you.
What is staircasing?
Staircasing is the process of purchasing additional shares in your shared ownership property, on top of the share you originally bought.
Many people fund this by increasing their mortgage, but that’s not the only option. You may be able to use savings, an inheritance or another source of funds to buy the additional share instead.
As you increase the share you own, the rent you pay to your housing association on the remaining share reduces proportionally. If you increase your mortgage to fund the purchase, your monthly mortgage payments will usually rise. If you fund the purchase without borrowing more, your mortgage can stay at the same level while your rent reduces.
For example, if you currently own 40% of your home and staircase to 60%, you’ll own a larger share of the property and pay rent on the remaining 40%. Depending on how you’ve funded the purchase, your mortgage payments may increase or remain the same, but your monthly rent bill will reduce.
How much can you staircase at a time?
This depends on when your lease was granted.
| Lease Type | Minimum staircasing increment |
|---|---|
| Pre-2021 model lease | Usually 10% per transaction |
| 2021 model lease (new builds) | As little as 1% per year |
The introduction of 1% annual staircasing under the 2021 model was a significant change, designed to make it more accessible for shared owners to gradually build equity without needing to save for a large lump sum. If you’re unsure which type of lease you have, your solicitor or housing association can confirm this.
How is the price calculated?
This is the crucial detail that catches many shared owners off guard! You don’t buy additional shares at the price you originally paid.
Each time you staircase, your housing association will commission a RICS (Royal Institution of Chartered Surveyors) registered valuer to assess the current market value of the property. Your new share is priced based on that current valuation.
Let’s understand with an example:
Let’s suppose you are planning to buy a 40% share of a property when it was valued at £250,000. Your initial share was worth £100,000.
Three years later, you decide to staircase to 60%. The property is now valued at £300,000.
- The additional 20% share is now calculated on £300,000, not the original £250,000
- 20% of £300,000 = £60,000 (not the £50,000 it would have been at purchase)
- But your 40% share has also grown in value from £100,000 to £120,000, so you’ve already benefited from that increase too
This is why staircasing is most financially attractive in a rising market, where your existing equity has grown alongside the additional cost.
What are the costs involved?
Staircasing isn’t free; you’ll need to budget for the following:
- RICS valuation — typically £300 to £500, commissioned before each transaction
- Solicitor’s fees — your conveyancer will handle the legal side of the staircasing transaction
- Stamp Duty Land Tax — may become payable depending on the value of your accumulated share (your solicitor will advise)
- Mortgage arrangement fees — if you’re remortgaging to fund the purchase
It’s worth speaking to a mortgage adviser before committing, as your existing lender may not offer the best rate for the increased share.
What happens when you reach 100%?
When you purchase the final share needed to reach full ownership, rent payments to your housing association stop entirely. For houses (not flats), you may also be able to purchase the freehold at this stage, becoming the outright owner of both the property and the land it sits on.
Only around 2.6% of shared owners fully staircase to 100% each year, which shows that most people find a share level that works for them and stay there, rather than treating 100% as an automatic goal.
So is it worth it?
Staircasing makes the most sense when:
- Property values in your area have risen significantly, and you want to lock in more equity before they rise further
- Your income has grown, and you can comfortably afford the increased mortgage
- Your rent payments are a significant monthly outgoing, and you want to reduce them
- You’re planning to sell and want to maximise your return
It’s worth reviewing every few years rather than leaving it entirely. Even a small staircase, particularly under the 1% annual option, can make a meaningful difference to your financial position over time.
If you’re buying, selling or remortgaging a shared ownership property and have questions about staircasing, our shared ownership solicitors team at PLS can help you understand your legal options. Get in touch to find out more.
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