Do Shared Ownership Properties Increase in Value?

October 25, 2023


Shared ownership has become a sought-after path to homeownership in the UK, enabling many to get a foot on the property ladder who might otherwise find it financially challenging. While shared ownership offers an affordable entry into homeownership, a key question for those considering this option is whether shared ownership properties increase in value over time.

Shared Ownership: A Brief Overview

Shared ownership allows you to purchase a share, typically between 25% and 75%, of a property and pay rent on the remaining portion, which is owned by a housing association or developer. Over time, you have the option to buy additional shares, eventually increasing your ownership percentage or even reaching 100%, depending on your financial capacity and goals.

Factors Influencing Property Appreciation in Shared Ownership:

The potential for shared ownership properties to increase in value is influenced by several key factors:

  1. Location: Location is a defining factor within the context of shared ownership property appreciation. The choice of an appealing neighbourhood, access to transport links, and proximity to essential services are all pivotal elements in determining the property's long-term value. Opting for a strategically advantageous location can result in significant growth potential for shared ownership investments.
  2. Local Housing Market: The overall health of the housing market in your chosen area plays a significant role. If the market is experiencing growth and demand exceeds supply, property values tend to rise.
  3. Property Condition: The condition of the property is vital. Well-maintained homes often appreciate better than those in poor repair. Upkeep and improvements can contribute to increased value.
  4. Community Development: Shared ownership properties within communities with robust development plans or infrastructure improvements tend to appreciate as the area becomes more attractive.
  5. Economic Trends: Broader economic factors, such as employment opportunities and wage growth in the area, can influence property values. A prosperous local economy often leads to property appreciation.
  6. Interest Rates: The prevailing interest rates on mortgages can affect property values. Lower interest rates can stimulate demand and lead to price increases.
  7. Government Initiatives: Government schemes and incentives, such as Help to Buy, can boost the housing market and potentially drive property appreciation.
  8. Supply and Demand: The balance between housing supply and demand in your chosen location significantly impacts property values. If the demand for shared ownership properties is high, values may rise.
  9. Property Improvements: Making upgrades and improvements to your shared ownership property can increase its value. This includes renovations, modernization, and energy-efficient enhancements.
  10. Inflation: The general rate of inflation can lead to rising property values, as the cost of construction and materials increases over time.

Requesting a Property Valuation:

To understand the current market value of your shared ownership property and whether it has appreciated since your purchase, booking a property valuation is a crucial step. A property valuation provides you with an estimate of the property's worth based on various factors, including recent sales of comparable properties in the area, its condition, and market trends. Consult with local estate agents who have a good understanding of the property market in your area. A property valuation will give you a clear picture of your shared ownership property's current market value, allowing you to make informed decisions about your homeownership journey.

Shared Ownership Property Appreciation: What to Expect?

The appreciation of shared ownership properties can vary based on the factors mentioned above. While shared ownership is an affordable way to enter the property market, it's important to have realistic expectations regarding property appreciation:

  1. Market-Dependent: Property appreciation in shared ownership is market-dependent. If you're in a location with strong demand and limited supply, your property may see better appreciation.
  2. Staircasing Opportunities: If you have the means to purchase additional shares in your property (a process known as "staircasing"), you have the potential to increase your ownership percentage and benefit more from any appreciation in value.
  3. Maintenance and Upgrades: Taking good care of your property and making improvements can positively influence its value.
  4. Market Fluctuations: Like all properties, shared ownership homes can be influenced by market fluctuations. Values can go up and down in response to broader economic conditions.
  5. Local Economic Factors: The local economic environment, including job opportunities and infrastructure development, can also impact property values.
  6. Government Initiatives: Government incentives and schemes can affect property appreciation. Keep an eye on any changes to these initiatives.


Shared ownership properties have the potential to increase in value, but the extent of this appreciation is influenced by several factors, including location, market conditions, property conditions, and community development. Property valuation helps you make informed decisions about your shared ownership investment and allows you to plan your future homeownership journey with confidence. While shared ownership provides an accessible entry into the property market, it's essential to be aware of the market dynamics in your area and stay informed about factors that can influence property values.


Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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