What Is Shared Ownership and How Does It Affect Possession Rights?
Shared ownership is a government-backed homeownership scheme administered primarily by housing associations and registered providers of social housing. Under the scheme, an occupier purchases a percentage share of a property — typically between 25% and 75% — and pays rent on the remaining share to the housing association under a long leasehold interest, usually for 99 or 125 years.
This dual status — part-owner and part-tenant — is what makes shared ownership possession proceedings more complicated than a standard private rental. The shared owner holds a long lease (not a periodic tenancy), but the rental element of that lease creates an assured tenancy under the Housing Act 1988. This means the Section 8 possession procedure applies to the rental portion of the arrangement.
The leasehold element
The shared owner holds a long lease governed by the terms of the shared ownership lease itself. Breaches of lease terms — such as subletting without consent, making alterations, or failing to maintain the property — are dealt with under the lease's forfeiture provisions, often alongside a Section 8 notice.
The assured tenancy element
The rent paid on the unowned share creates an assured tenancy. Non-payment of this rent, persistent late payment, or other tenancy breaches are dealt with via the Section 8 procedure — specifically a Form 3A notice citing the relevant Schedule 2 ground from the Housing Act 1988.
🏛 Statutory basis
Shared ownership tenancies are assured tenancies under the Housing Act 1988 — legislation.gov.uk ↗. Ground 12 (breach of terms) and the arrears grounds apply in the same way as for standard assured tenancies. Forfeiture provisions in the lease are governed by the Law of Property Act 1925 s.146 — legislation.gov.uk ↗.