Shared Ownership vs Help to Buy: What’s the difference?

Buying a home is one of the biggest financial decisions you'll ever make, and finding the right support can make all the difference. While the Help to Buy scheme has now ended, there are still great options available to help make homeownership more affordable. One of the most effective alternatives is Shared Ownership, a Government-backed scheme designed to help people get on the property ladder with a smaller deposit and lower monthly payments.

Jump to:

• What was Help to Buy, and why it ended?
• What is Shared Ownership, and how does it work? 
• The key differences between Help to Buy and Shared Ownership 
• Homeownership support in Scotland 
• How Places for People can help 

What was Help to Buy, and did it end?

Help to Buy was a Government-backed initiative designed to help first-time buyers and existing homeowners purchase a property with a smaller deposit. The scheme included the Help to Buy Equity Loan, which was available in England and allowed buyers to borrow up to 20% (or 40% in London) of a new-build home’s cost from the Government, on top of a 5% deposit. It also included the Help to Buy ISA, a savings account where the Government boosted savings by 25%, although this scheme is now closed to new applicants.

The Help to Buy Equity Loan scheme ended in March 2023, meaning buyers now need to explore other avenues to make homeownership more accessible. 

What is Shared Ownership, and how does it work?

Shared Ownership is a Government-backed scheme designed to help buyers purchase a share of a property while paying rent on the remaining portion. Over time, you can increase your share (a process called staircasing) until you own the home outright.

How it works:

1. You purchase a percentage (between 10% and 75%) of a home.
2. You pay a mortgage on the owned portion and rent on the rest.
3. Over time, you can buy more shares in the property.
4. In most cases, you’ll need a much smaller deposit than with traditional home purchases.

Shared Ownership is available to: 

• First-time buyers 
• Those who previously owned a home but can’t afford to buy now 
• Households earning under £80,000 per year (£90,000 in London)

What to learn more about your housing-buying options? Explore our ways to help you buy at Places for People. 

The key differences between Help to Buy and Shared Ownership

With Help to Buy no longer available, Shared Ownership has become a leading alternative for those looking to get onto the property ladder. However, there are key differences between the two schemes.

One of the biggest differences is how each scheme supports affordability. Help to Buy provided an equity loan, where the Government lent up to 20% (or 40% in London) of a home’s value, reducing the amount buyers needed to borrow through a mortgage. In contrast, Shared Ownership allows buyers to purchase a portion of a home—typically between 10% and 75%—while paying rent on the remaining share.

Deposits also work differently. Help to Buy required buyers to put down at least 5% of the full property price - so for a £200,000 home, that meant a minimum deposit of £10,000. With Shared Ownership, the deposit is based only on the share you’re purchasing. For example, if you’re buying a 50% share of a £200,000 home, you’d need a deposit on the £100,000 share - so with a 5% deposit, that’s just £5,000, making homeownership more accessible for those with smaller savings.

Another key difference is flexibility. With Shared Ownership, buyers can gradually increase their share in the property over time through a process called staircasing — allowing you to work towards full ownership at your own pace. Help to Buy didn’t offer the same option. Although the Government loan didn’t need to be repaid until you sold or refinanced, interest started accruing after five years, which could add to your long-term costs.

In terms of property eligibility, Help to Buy was only available for new-build homes, while Shared Ownership applies to both new-build and resale properties, offering a wider selection of homes for potential buyers.

For those considering their next step, Shared Ownership can be a great alternative, offering lower deposits, flexible purchasing options, and access to a variety of homes. 

Homeownership support in Scotland

While the Help to Buy (Scotland) scheme has ended, buyers in Scotland still have options - including the Shared Equity Scheme. Similar to Help to Buy, this initiative allows buyers to purchase a home with Government assistance, securing a stake while reducing upfront costs. You can read how one buyer made the most of this opportunity in our Shared Equity testimonial. 

How Places for People can help

At Places for People, we’re committed to helping people find affordable homeownership solutions. Whether you’re considering Shared Ownership or other options, we can help guide you through the process. 

If you’re ready to take the next step toward owning your home, explore our ways to help you buy at Places for People. 

Final thoughts

Although Help to Buy has ended, there are still many ways to make homeownership a reality. Shared Ownership remains a fantastic alternative, offering lower deposits and greater flexibility to suit different financial situations.

If you're exploring your options, Places for People is here to help. Check out our available homes and find the perfect solution to get you on the property ladder today.