The Future of Shared Ownership in the East Midlands

Why shared ownership is gaining ground in 2025

With house prices continuing to climb and the cost-of-living biting into household budgets, shared ownership is becoming a lifeline for many first-time buyers across the East Midlands. As the housing market evolves, so too does this affordable ownership model. In this blog, we explore how shared ownership is changing, why the East Midlands is a key region to watch, and what this means for buyers and investors alike.

What is shared ownership and how does it currently work?

Shared ownership is a hybrid housing scheme that allows buyers to purchase a share of a property (typically between 25% and 75%) while paying rent on the remaining portion. It offers a more accessible path to home ownership for those unable to afford to buy outright. In the East Midlands, this model is gaining traction, particularly amongst younger buyers and key workers.

To get started, buyers usually need a deposit of just 5% of their share (gov.uk), making it much more achievable than full ownership. Schemes are often run by housing associations, and buyers can increase their stake in the property over time through a process known as ‘staircasing’.

According to recent figures, uptake of shared ownership has grown steadily in the region, with more developments across Leicestershire, Nottinghamshire, and Derbyshire now offering this option (whathouse.com).

Why the East Midlands is a key region for shared ownership

The East Midlands stands out as a hotspot for shared ownership. With strong transport links, relatively affordable housing compared to the South East, and a growing economy, it’s a natural fit for the model.

Local property prices have surged by nearly 77% since 2013 (platformhomeownership.com), pricing many buyers out of the full ownership market. Shared ownership bridges that affordability gap, offering a practical route into high-demand areas like Leicester, Derby, and Nottingham.

At Readings Property Group, we’ve seen growing demand for shared ownership homes from people who want to live near where they work, particularly in thriving towns with good amenities and infrastructure.

Key trends shaping the future of shared ownership

Rising property prices and the affordability gap

The average market price for homes in England rose from around £164,600 in 2008/09 to £313,100 by 2023/24 – an increase of nearly 90% (gov.uk). This price pressure is pushing more buyers toward alternative routes like shared ownership.

Changing eligibility, deposits and share levels

In many East Midlands developments, buyers can access shared ownership with just a 5% deposit. Shares start as low as 25%, and buyers can later increase their stake through staircasing. These flexible options make it easier for people to get a foot on the ladder without overextending financially.

Supply, policy and institutional investment

Across the UK, over 250,000 shared ownership homes now exist. Housing associations have seen a £6.5bn turnover increase from shared ownership in the past decade (insidehousing.co.uk). However, policy scrutiny is rising. Issues like high service charges and leasehold confusion are under review by parliament (publications.parliament.uk).

Implications for buyers and investors

For buyers, shared ownership remains a relatively safe way into property, provided they understand the terms. For investors and developers, the growing popularity of shared ownership means demand for these schemes will likely increase, particularly in urban centres and commuter towns.

Model house on desk with coins stacked beside it.

What the future could look like in the East Midlands

Scenario A: Growth and mainstream adoption

With more government support and rising demand, shared ownership could become a standard part of the new-build landscape in the region. Expect to see more developments tailored to shared ownership buyers.

Scenario B: Consumer-driven reform

If policy pressure leads to reform, we may see more buyer-friendly contracts, reduced rent escalations, and improved staircasing flexibility. That would make the scheme more attractive and transparent for cautious buyers.

What buyers should do in either case:

Choose your area carefully: Focus on transport, schools, and local amenities.
Plan long-term: Understand how staircasing works, and factor in associated costs.
Use local expertise: Agents like Readings understand which schemes offer value and which areas have strong resale potential.

Practical steps for buyers in the East Midlands interested in shared ownership

Check your eligibility: Use online platforms like sharetobuy.com to browse schemes in your area.
Understand the costs: Mortgage payments, rent on the unsold share, service charges, and staircasing costs all add up.
Research resale demand: Ensure your location is desirable to avoid issues later.
Think about future flexibility: Will you want to staircase? What happens if your circumstances change?
Speak to a local expert: A knowledgeable agent like Readings will help you find a scheme that suits your needs and avoid common pitfalls.

Why partnering with Readings Property Group gives you an edge

With over 85 years of experience in the East Midlands property market, Readings Property Group knows what works. We understand the ins and outs of shared ownership schemes and can help you navigate the process with confidence.

Whether you’re buying for the first time or looking to downsize into a part-buy, part-rent option, we provide:

Local knowledge of Leicester and the surrounding areas
Advice on valuations, staircasing, and resales
Access to shared ownership listings across the region

Check out our post on “First-time buyer mistakes to avoid” for more tips.

Ready to explore shared ownership?

Book a free consultation with Readings Property Group today. We’ll walk you through the process, answer your questions, and help you find the right opportunity in Leicester, Derby, Nottingham, or beyond.