Scotland's Open Market Shared Equity and New Supply Shared Equity schemes let eligible buyers purchase a share of a home while the Scottish Government retains the rest, with no rent charged on the retained share. This guide explains how the schemes work, who qualifies, and how staircasing and selling work.
How Shared Equity Works
Under a Scottish shared equity arrangement, an eligible buyer purchases a percentage share of a property -- commonly between 60% and 90% -- funded by a mortgage and deposit, while the Scottish Government (via a housing association or local authority) retains the remaining share. Unlike shared ownership in England and Wales, no rent is charged on the retained share, though the buyer is responsible for full maintenance and buildings insurance on the whole property.
Open Market vs New Supply
Open Market Shared Equity applies to homes already on the open market and is primarily targeted at social tenants buying for the first time, other first-time buyers on modest incomes, and disabled buyers needing an adapted home. New Supply Shared Equity applies to new-build homes specifically developed under the scheme, often through housing associations, with its own funding allocation and price caps set by the Scottish Government each year.
Eligibility
Eligibility criteria include income limits, a maximum property price, and priority categories such as social housing tenants, people with a registered disability, and members of the armed forces or veterans in some allocations. Because criteria and funding availability are reviewed periodically and vary by local authority, check current thresholds with your local council or a participating housing association before assuming eligibility.
Staircasing and Selling
Buyers can increase their share over time by "staircasing" -- purchasing further percentage points from the funding body, valued at the property's market value when each purchase is made rather than the original price. If the property is sold before full staircasing, proceeds are split between the buyer and the funding body in the same proportion as the ownership shares at the time of sale, based on an independent valuation.
Frequently Asked Questions
What is Scotland's shared equity scheme?
Shared equity lets an eligible buyer purchase a percentage of a home's value (commonly 60%-90%) using a mortgage and deposit, while the Scottish Government (through a registered social landlord or housing association) retains the remaining equity share, in exchange for no rent being charged on that retained share.
What is the difference between Open Market and New Supply Shared Equity?
Open Market Shared Equity lets eligible buyers purchase an existing home on the open market with government-backed equity support, primarily aimed at social tenants, disabled buyers and those on lower incomes. New Supply Shared Equity applies specifically to new-build homes developed for this purpose, typically with a different funding split.
Who is eligible for Open Market Shared Equity?
Priority is usually given to social housing tenants looking to buy for the first time, first-time buyers more broadly on modest incomes who cannot afford 100% of a suitable home without support, and people with a disability needing an adapted property. Income and property price caps apply and are reviewed periodically.
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Do I pay rent on the government's equity share?
No -- unlike shared ownership in England and Wales, Scottish shared equity does not charge rent on the retained government share. You own and are responsible for the whole property (including full maintenance and buildings insurance) but only need a mortgage and deposit for your percentage share.
How do I eventually own 100% of the home?
You can "staircase" by buying further shares from the funding body over time, usually in minimum increments, based on the property's value at the time of each purchase rather than the original price. Some buyers choose to remain on a part-share indefinitely rather than staircase to full ownership.
What happens to the government's share if I sell the property?
On sale, the proceeds are split in the same proportion as the ownership shares at that time, based on an independent valuation. If the property has risen in value, the funding body receives its proportionate share of the increase; if it has fallen, the loss is also shared proportionately.
Is shared equity the same across Scotland, England and Wales?
No. Housing is devolved, so Scotland's shared equity model (no rent on the retained share) differs structurally from shared ownership schemes in England and Wales, which typically charge rent on the landlord's retained percentage. Always check the specific scheme rules for the nation you are buying in.
Can I get a shared equity home anywhere in Scotland?
Availability depends on funding allocated to housing associations and local authorities in a given area and year, so shared equity homes are not available everywhere at all times. Check with your local authority or the Scottish Government's affordable housing pages for current availability in your area.
Disclaimer: Shared equity eligibility, price caps and funding availability are set by the Scottish Government and local authorities and change periodically. This guide is for general information only and is not professional advice. Refer to gov.scot and your local authority for current scheme details before applying.
