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Shared ownership

Shared ownership is usually provided by housing associations and means that you own a percentage of your home and pay rent on the percentage still owned by the housing association.

When claiming Universal Credit (UC), you can still receive help with the rent portion of your housing. UC will calculate your rent as a monthly average and pay this in full. You will not be able to receive help with mortgage payments through Universal Credit but may qualify for a SMI loan.

If you report living in a shared ownership property, you will be asked to give details of your mortgage amount and provider, as well as the amount of rent you pay.

Unlike social housing, there would be no deduction if you have a spare bedroom.

UC do not need to consider the limitations of the LHA rate either, which only applies to private rent.

Your housing element would be equal to your actual rent minus with any eligible service charges minus any non-dependent deduction, if relevant. 


Non-Dependent Deduction (Housing Cost Contribution)

There may be a non-dependent deduction of £91.47 (£85.73, if prior to 8/4/24) for any other adult who lives in your house, unless an exemption applies. 

A non-dependent is someone who resides with you that is not a dependent child or a partner and is not liable for paying the rent. 

It is not someone who you collect rent from as a sub-tenant. 

It is normally a grown up son or daughter or elderly relative.​

There will be no deduction if the non-dependent is:

  • under 21

  • receiving Pension Credit

  • receiving the care component of Disability Living Allowance at the middle or highest rate

  • receiving the daily living component of Personal Independence Payment

  • receiving Attendance Allowance 

  • receiving Carer's Allowance

  • the primary carer for a child aged 4 or under

Or if the main renter (or partner) is in receipt of Disability Living Allowance (middle/high rate care), Personal Independence Payment (daily living) or Attendance Allowance or you or your partner are registered blind.

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