Selling When You Have Shared Ownership

If you bought your home through the shared ownership scheme, selling it is not as simple as instructing an estate agent and putting it on Rightmove. Your housing association has specific rights over the sale process, including who can buy your property and at what price. These restrictions exist because shared ownership is designed to keep homes affordable, but they add steps and time you need to plan for.

This guide covers the restrictions and requirements you will face when selling a shared ownership property, from the housing association's right of first refusal through to staircasing costs and what happens if the nomination period does not produce a buyer. For a broader overview, see our main guide on selling a shared ownership property.

The housing association's right of first refusal

The single most important restriction on selling a shared ownership property is the housing association's right of first refusal. This right, embedded in your shared ownership lease, means the housing association gets the first opportunity to find a buyer before you can sell on the open market.

In practice, this works through a nomination period — a fixed window of time during which the housing association exclusively markets your property to eligible buyers on its waiting list. The nomination period typically lasts eight weeks, although it can range from four to twelve weeks depending on the specific terms of your lease. During this period, you cannot:

• Market the property yourself or through an estate agent
• Accept offers from buyers outside the housing association's process
• Advertise the property on Rightmove, Zoopla, or any other portal
• Negotiate the sale price, which is fixed by a RICS valuation

The right of first refusal exists because shared ownership is publicly funded affordable housing. Homes England requires housing associations to give eligible applicants priority access to resale properties before they reach the open market (Homes England, Capital Funding Guide, Section 5).

How the nomination period works in practice

The nomination period begins after you have notified your housing association of your intention to sell and an independent RICS valuation has been completed. Here is what happens during those eight weeks:

1. Your housing association markets the property. The association advertises your home to buyers on its waiting list who match the eligibility criteria for the area. This may include listing the property on the association's own website and on shared ownership portals such as Share to Buy.
2. Viewings are arranged. The housing association coordinates viewings with prospective buyers. You may need to facilitate access to the property for these viewings.
3. Eligible buyers are assessed. Prospective buyers must meet the scheme's eligibility criteria, including a household income cap of £80,000 outside London (£90,000 in London) and a local connection to the area. The housing association verifies eligibility before matching a buyer with your property.
4. A buyer is matched or the period expires. If a suitable buyer is found, the sale proceeds directly. If no buyer is found within the nomination period, the housing association issues written confirmation that you are free to sell on the open market.

During the nomination period, you should use the time productively by instructing a solicitor, gathering your documents needed to sell, and preparing your legal pack. This way, when a buyer is found — whether through the nomination or on the open market — you are ready to move straight into conveyancing without delay.

The RICS valuation: how your sale price is set

Unlike a conventional sale where you set the asking price, the sale price of a shared ownership property is determined by an independent RICS (Royal Institution of Chartered Surveyors) valuation. You cannot choose your own price or negotiate above the valuation figure. The process works as follows:

• The housing association instructs the surveyor. You do not choose the surveyor yourself. The association selects one from its approved panel to ensure independence.
• You pay the valuation fee. The cost typically ranges from £150 to £500, depending on the property and the surveyor. This fee is payable upfront and is non-refundable.
• The surveyor assesses full market value. The surveyor values the entire property at its open market value, taking into account its condition, location, size, and comparable sales. The value of your share is then calculated as a percentage of this figure.
• The valuation is valid for three months. If the sale does not complete within this window, a fresh valuation may be required at your expense. RICS valuation standards require the assessment to reflect current market conditions, so a valuation that is more than three months old may no longer be considered reliable (RICS, Red Book Global Standards).

For example, if you own a 40% share and the property is valued at £300,000, your share is worth £120,000. This is the price the buyer pays, regardless of what you originally paid. If property values have fallen since you purchased, the valuation will reflect this, which could mean selling at a loss.

Staircasing to 100% before selling

Staircasing — buying additional shares from the housing association — is the most effective way to remove selling restrictions. If you staircase to 100% before selling, you typically gain the right to sell on the open market without a nomination period, set your own asking price, and access the full pool of buyers with standard mortgages.

However, staircasing to 100% involves significant upfront costs:

The staircasing process typically takes eight to twelve weeks from requesting the valuation to completion. You will need a mortgage or cash to fund the purchase. Homes England guidance confirms that most leases allow staircasing in increments of 10% or more (Homes England, Capital Funding Guide, Section 5).

One important caveat: some leases retain a pre-emption clause even after full staircasing, meaning the housing association may still have the right of first refusal on any future sale. Check your lease carefully with your solicitor before assuming that staircasing removes all restrictions.

Selling your share back to the housing association

Some housing associations will buy your share back directly, though this is not a right — it depends on the association's policies, available funding, and local demand for affordable housing. A buyback can be faster and more certain than finding a third-party buyer, because you are dealing with a single institutional purchaser rather than navigating the nomination and open market process.

If a buyback is offered, the price will be based on the RICS valuation of your share — you cannot negotiate a different price. Buybacks are more common where the association has strong demand from its waiting list and wants to retain the property within the affordable housing stock. Contact your housing association's resales team early to ask whether this option is available.

Restrictions on who can buy your share

If you are selling your share rather than a fully staircased property, the buyer must meet specific eligibility criteria during the nomination period and, in most cases, during an open market sale as well. The standard Homes England eligibility criteria include:

• A household income of no more than £80,000 per year outside London, or £90,000 in London
• Being unable to afford to buy a suitable home on the open market without assistance
• Having a local connection to the area, or being a serving member of the armed forces (GOV.UK, Shared Ownership: A Buyer's Guide)
• Being a first-time buyer, a previous homeowner who can no longer afford to buy, or an existing shared owner looking to move

These restrictions narrow the buyer pool considerably. If the nomination period passes without a buyer, some criteria may be relaxed for the open market phase, but the buyer will still need the association's approval. The only way to remove eligibility restrictions entirely is to staircase to 100%.

Costs of selling a shared ownership property

Selling a shared ownership home involves several costs beyond what you would pay for a standard property sale. Understanding these upfront helps you calculate your net proceeds accurately. For a wider view of conveyancing expenses, see our conveyancing costs breakdown.

In total, shared ownership selling costs — excluding estate agent fees — typically add £1,300 to £3,000 before mortgage redemption. If the sale moves to the open market,estate agent commission is calculated on the value of your share, not the full property value.

What happens when the nomination period expires

If your housing association does not find a buyer during the nomination period, the process shifts to an open market sale. This is a significant change, but it does not remove all restrictions.

Once the housing association confirms in writing that the nomination period has ended:

• You can instruct an estate agent and market the property on Rightmove, Zoopla, and other portals
• The listing must clearly state that the property is shared ownership and specify the percentage being sold. This is a requirement under the National Trading Standards Estate and Letting Agency Team material information guidance
• The sale price remains based on the RICS valuation, not on an asking price you or your estate agent set
• If the buyer is purchasing your share only (not 100%), they must still be approved by the housing association and will need a shared ownership mortgage, which not all lenders offer

The open market phase can take as long as a standard property sale — typically eight to twelve weeks from finding a buyer to completion. For a full breakdown of conveyancing timelines, see our guide on how long conveyancing takes.

Shared ownership lease terms that affect your sale

Your shared ownership lease governs the selling process, and some clauses can create unexpected complications. Most leases are based on the Homes England model lease, but older leases may differ. Before you notify your housing association, have your solicitor review the lease to check for:

• Nomination period length. This varies between leases. Knowing the exact duration helps you plan your timeline realistically.
• Pre-emption clauses after full staircasing. Some leases give the housing association the right of first refusal even after you have staircased to 100%.
• Remaining lease term. Shared ownership properties are leasehold, and a short remaining lease (below 80 years) will reduce mortgage availability for your buyer. Most housing associations will extend shared ownership leases, often at a lower cost than a private leasehold extension (GOV.UK, Shared Ownership: A Buyer's Guide).
• Consent to alterations. If you have made changes to the property, the buyer's solicitor will check whether you obtained the housing association's written consent. Unapproved alterations can delay or derail a sale.
• Subletting restrictions. Most shared ownership leases prohibit subletting without consent. If you have been subletting, this could create complications during the sale.

The staircasing process step by step

If you decide to staircase to 100% before selling, here is what the process looks like. It typically takes eight to twelve weeks.

1. Notify your housing association. Write to your housing association stating that you wish to staircase. They will confirm the process and any fees.
2. Obtain a RICS valuation. The association instructs a surveyor from their approved panel to value the property at its current market value. You pay the valuation fee (typically £150 to £500).
3. Receive the offer from the housing association. Based on the valuation, the association calculates the price for the remaining share and sends you a formal offer.
4. Arrange funding. If you need a mortgage to fund the purchase, apply to your lender or a new one. Some lenders offer products specifically designed for staircasing.
5. Instruct a solicitor. Your solicitor handles the legal transfer, including updating the lease and registering the change at HM Land Registry.
6. Complete the staircasing. Once funds transfer, your lease is updated to reflect 100% ownership, and rent on the association's share ceases.
7. Check for remaining restrictions. Review your lease with your solicitor to confirm whether any pre-emption clauses remain in place.

Stamp Duty Land Tax (SDLT) may apply to the staircasing transaction. SDLT on shared ownership can be calculated on a market value election basis or a staircasing election basis. Your solicitor can advise on which method applies and whether SDLT is payable (GOV.UK, Stamp Duty Land Tax: shared ownership property).

Tips for a smoother shared ownership sale

Shared ownership sales involve more parties and more steps than a standard sale, so preparation is essential:

1. Contact your housing association early. Ask about the nomination period length, their resale process, and whether a buyback might be available. The earlier you start, the fewer surprises you will encounter.
2. Instruct a solicitor with shared ownership experience. An experienced solicitor will know how to liaise with the housing association, manage the nomination process, and handle the additional lease provisions efficiently.
3. Use the nomination period to prepare your legal pack. While the housing association searches for a buyer, your solicitor can prepare the contract pack and complete forms. Pine supports exactly this approach — getting your legal documents ready before a buyer is found so the transaction can progress quickly.
4. Clear any arrears. Outstanding rent or service charges will need to be settled before completion and can delay the housing association's consent.
5. Consider staircasing if the numbers work. If the cost of purchasing the remaining share is outweighed by the benefit of faster, unrestricted access to the open market, staircasing before selling may be worthwhile.

Sources

• GOV.UK — Shared ownership: A buyer's guide (applies to sellers too) — gov.uk/shared-ownership-scheme
• Homes England — Capital Funding Guide, Section 5: Shared Ownership — gov.uk/guidance/capital-funding-guide
• Homes England — Model Shared Ownership Lease — gov.uk/government/publications/model-shared-ownership-lease
• GOV.UK — Stamp Duty Land Tax: shared ownership property — gov.uk/guidance/sdlt-shared-ownership-property
• RICS — Valuation standards (Red Book Global Standards) — rics.org
• National Trading Standards Estate and Letting Agency Team —Material Information in Property Listings guidance
• UK Finance — Lenders' Handbook (shared ownership mortgage requirements) — ukfinance.org.uk

Related guides

• Selling Your House to the Council

Frequently asked questions