Glossary · UK
What is Staircasing?
The process of buying additional shares in a shared ownership home to increase the percentage you own.
Full Definition
Staircasing is the process by which a shared ownership homeowner buys further shares in their property, gradually increasing the proportion they own and reducing the rent paid on the remaining share. You typically start by buying an initial share of the home and paying rent to a housing provider on the rest. Over time, as your finances allow, you can purchase additional shares, often in stages, until in many cases you own the property outright and pay no further rent. The price of each new share is based on the property's market value at the time you staircase, so if values have risen, additional shares cost more. There are usually costs involved at each step, including a valuation, legal fees, mortgage arrangement fees and potentially Stamp Duty Land Tax, so it is worth planning the timing. Some newer shared ownership leases allow smaller staircasing steps to make the process more affordable. Reaching full ownership can remove rent and may give greater freedom to sell on the open market. Terms vary by scheme and lease, so check your specific agreement before staircasing.