Your FAQs – answers about shared ownership and Sparrow
Understanding shared ownership
Shared ownership lets you buy a share of a home (usually between 25% and 75%) and pay rent on the rest. The share you buy is yours. The rest is owned by us, your landlord.
So, in practice: you take out a mortgage on your share, pay us rent on ours, and pay a service charge that covers the upkeep of any communal areas. You live in the whole home. We're the freeholder of the building.
People choose shared ownership because:
You need a much smaller deposit. Your deposit is usually based only on the share you’re buying, not the full value of the home.
For example, if you buy a 25% share, you typically only need a deposit on that 25%. This is one of the biggest benefits of shared ownership and can make buying a home possible years earlier than saving for a full deposit.Lower mortgage costs to start with. Because you’re borrowing less, your mortgage payments are often lower than buying outright. That can make monthly costs more manageable, especially when you’re first getting onto the property ladder.
You’re a homeowner, not a renter. You own a stake in your home from day one and benefit if its value increases. Over time, you can usually buy more shares if you can afford to.
Shared ownership isn’t perfect — and it’s not right for everyone. You’ll pay rent as well as a mortgage, you’re responsible for repairs, and costs like rent can increase over time. We explain these limitations clearly throughout these FAQs, so you can decide whether shared ownership works for you.
Short answer - no.
You're a leaseholder, not a freeholder. That means there are things you need our permission for (like major alterations and subletting), there's a lease term that matters, and you pay rent alongside your mortgage. You can't always sell as quickly as someone with a standard home.
What you do get: a foot on the ladder, the right to make the place your own, equity that should build overtime (as you pay down your mortgage), and the option to buy more shares over time. Most shared owners we speak to say it was the right call for where they were in life - but they wish they understood the trade-offs better at the start. So we're trying to fix that.
Sparrow Shared Ownership was set up in August 2024 to manage more than 3,000 shared ownership homes across England. Those homes were originally build by Sage Homes and were bought by USS, the Universities Superannuation Scheme - one of the UK's largest pension funds.
USS invests on behalf of around 500,000 university staff and pensioners. They put money into shared ownership because they need long-term, stable investments to pay pensions decades into the future. Your home is one of those investments.
What that means for you: USS is in this for the long-term. They are not chasing short returns. Sparrow is the regulated business that runs homes day to day - and we're regulated by the Regulator of Social Housing (governance, viability, and consumer standards).
It's not the cheapest route into full ownership. If you decide to buy more shares in your home, there are extra costs each time. These can include a valuation, legal fees and setting up a new mortgage. Over time, these costs can add up, so it’s important to factor them in from the start.
You’re responsible for repairs. Even though you only part‑own your home, you’re responsible for looking after it. That includes repairs and maintenance inside your home – just like any other homeowner. This can feel like a big change if you’re used to renting, where the landlord fixes things. But keeping your home in good condition protects its value and can make it easier to sell in the future.
Your rent will increase each year. The rent you pay on the share you don’t own usually goes up annually. This is written into your lease and is linked to when your home was built. We’ll always be clear about how this works, so you know what to expect over time.
Your money
Typically, three things every month:
Your mortgage - paid to your lender, on the share you own
Your rent - paid to Sparrow, on the share we own
Your service charge - paid to Sparrow for the upkeep and safety of communal areas and buildings. You'll get a clear breakdown of service charges applicable to you
You'll also have your own bills - like council tax, energy, water, contents insurance, and broadband. These are yours to set up and pay directly.
Your rent is calculated on the share of your home that Sparrow owns - not the whole property value.
Rent goes up once a year (every April), in line with the formula written in your lease.
Homes with leases from October 2023 onwards: CPI +1%
Older leases: RPI + 0.5%
These are fixed in your lease and we can't change them. But, we will write to you a month before any increase explaining exactly what is changing and why.
If you're struggling to afford an increase, talk to us as soon as you can.
Your service charge pays for the parts of your building and estate that aren’t inside your front door. These are shared areas and services that everyone benefits from. Typically, this includes:
Cleaning of communal areas in flats (such as hallways and stairwells)
Gardening and grounds maintenance
Lighting and electricity in communal areas in flats
Buildings insurance
Fire safety equipment and regular safety checks (for blocks of flats)
The management fee for running Sparrow, including staff and day‑to‑day admin
Each year, we (or your managing agent) set an estimated service charge based on what we expect these services will cost. The following September, we compare that estimate with what was actually spent. If we collected too much, you'll get a refund. If we collected too little, you'll be asked to pay the difference.
Service charges can go up for the same reasons many household costs do — rising energy prices, higher insurance premiums, and increases in labour or materials. They can also change if there’s a one‑off cost, such as a major repair or a new safety requirement. Each year, we send you a full breakdown showing what was spent, and you can ask to see the invoices if you want more detail.
We don’t make a profit from service charges. They’re there to cover the cost of running and maintaining your building and shared spaces — nothing more.
If you think a service charge isn’t right, you can formally query it. We’ll review your query and explain how the charge has been worked out.
It’s important to understand the difference between estimated and actual charges:
Estimated charges are based on what we (or your managing agent) expect services to cost in the year ahead. Because the spending hasn’t happened yet, there won’t be invoices to share — but we can explain how the estimate was calculated.
Actual charges reflect what was really spent. You can ask to see supporting evidence and invoices, which we’ll provide in line with our service charge policy.
If you’re still not satisfied after we’ve reviewed and explained the charge, you have the right to apply to the First‑tier Tribunal (Property Chamber) to have it independently considered.
We know service charges are one of the biggest sources of frustration for shared owners. The most honest thing we can do is be clear about what’s included in yours, explain how charges are set, and provide evidence to support the costs.
Please talk to us as soon as you can.
Money worries don’t usually fix themselves, and missing a payment can make things harder to resolve. If you’re worried about an upcoming payment, or you’ve already missed one, get in touch with us. We’ll listen and talk through your options with you.
Depending on your circumstances, that could include a short-term payment plan or signposting to independent advice and support so you can get help beyond Sparrow if you need it.
To be clear, Sparrow does not:
buy back homes to clear arrears or third‑party debt
offer downward staircasing to clear arrears (as this can increase costs and isn’t usually affordable)
offer 'rent holidays' - but we do offer payment plans up to 12-months (dependent on the arrears amount)
Voluntary surrender of a home is only considered in exceptional circumstances, and costs may apply.
We would always explain this fully if it were ever relevant.
Living in your home
Inside your home, repairs are your responsibility. That includes things like boilers, taps, appliances, walls, and decorating. This is because, even though you don’t own 100% of the home, you are a homeowner, not a tenant. Responsibility for day‑to‑day repairs comes with that.
If you live in a block of flats, we’re responsible for arranging repairs to shared or external parts of the building — such as the roof, external walls or lifts. The cost of this work is shared between residents and paid for through your service charge.
It’s also important to know that all Sparrow homes are outside the builder’s initial liability period, which usually covers the first two years after a home is built. That means minor defects or issues are no longer covered by the builder, and responsibility now sits with the homeowner.
Looking after your home helps protect its value and can make it easier to sell in the future — but we know this can feel like a big change if you’ve previously rented, and we’ll always be clear about where responsibilities sit.
Yes — in most cases.
Cosmetic changes are usually fine without asking us. That includes things like painting and wallpaper, flooring, light fittings, kitchen cupboards and bathroom suites. It’s your home, and you’re free to make it your own.
We do ask you to tell us about structural changes, such as knocking down or moving walls, extensions, loft conversions - anything that changes the layout or could affect fire safety (especially in flats).
This isn’t about stopping you — it’s about keeping things properly recorded. If you sell your home in the future, we’ll need to show that any major changes were agreed. Letting us know upfront can save time and problems later.
We’ll usually say yes. We just need to check your lease and make sure everything’s done safely and above board.
In most home, yes, of course.
If you live in a block of flats, you'll just need to check if your building has restrictions. We'll never say no without explaining why.
Taking in a lodger is usually fine. A lodger is someone who rents a room from you while you continue to live in the home. You’ll need to tell us first and check your lease, but this is generally allowed.
Subletting the whole home isn’t usually allowed. Shared ownership homes are intended to be your main home, not a rental property. For that reason, most shared ownership leases don’t allow subletting.
That said, we know life doesn’t always follow a straight line. In exceptional circumstances - for example, a temporary job overseas, serious illness, or a major change in family circumstances - we may be able to agree an exception. You’ll need to speak to us so we can review your situation and agree a way forward.
If subletting is agreed, you would be taking on the responsibilities of a landlord, including complying with relevant legislation and obligations.
The key thing is to talk to us before making any arrangements. That way, we can check your lease, explain what’s possible, and help you avoid problems later.
Parking arrangements depend on what you bought with your home and what’s set out in your lease.
If you bought a parking space, that space is yours to use. If someone else parks in it, you may be able to put up signage or install a bollard, subject to your lease and any estate rules.
If you didn’t buy a parking space, you don’t automatically have the right to park on the development. Some estates have visitor parking, and some don’t — this varies by scheme and will be set out in the estate rules.
Vans and commercial vehicles. Many newer developments restrict vans or commercial vehicles. If you’re thinking about buying a work van, it’s important to check your lease first.
If someone is parked in your space, try speaking to them first — most cases are genuine misunderstandings.
If the space is allocated rather than owned, we can help with signage or parking controls. Any costs for this would usually be shared through the service charge.
Please don’t park in turning points or anywhere that blocks access for emergency vehicles.
Communal indoor areas are cleaned on a planned schedule (fortnightly or monthly), to keep shared spaces safe, clean and welcoming. This includes regular cleaning of hallways, stairs, lifts, entrances, bin stores and other shared areas, alongside deeper cleans at set points during the year.
Shared outdoor areas are maintained throughout the year, with grass cutting, planting, pruning, litter picking and seasonal works carried out on a programmed basis.
Buying more or selling up
You can buy more shares in your home to increase your ownership. Each time you do, your rent goes down, because Sparrow owns less of the home.
Before you start, do some initial research.
Check your home’s current value. Sites like Rightmove or Zoopla can give you a rough idea of what similar homes are selling for. This won’t replace a formal valuation, but it can help you understand whether prices have gone up or down since you bought.
Think about the impact on your mortgage. Buying more shares usually means borrowing more. That can increase your monthly mortgage payments and may involve switching to a new mortgage product. Make sure the new payments are affordable not just now, but longer‑term too.
What it actually costs:
Staircasing comes with additional costs, including:
A new valuation of your home (around £240–£360, depending on the surveyor and only valid for 3 months)
Legal fees (typically £800–£1,500)
Mortgage costs, such as arrangement fees or a new product
The cost of the new share itself, based on the current market value (not what you originally paid)
Stamp duty, potentially, depending on the share size and value
Because of this, staircasing isn’t free — and it isn’t always quick. It usually takes around 2–3 months from start to finish.
If you're thinking about it, talk to us first. We'll be straight about whether it's likely to make sense for your situation.
Selling your share: You sell the percentage you own to a new shared owner. The new buyer takes over your share and starts paying rent to Sparrow on the rest.
Staircasing to 100% then selling: You buy the remaining share from Sparrow first, then sell the whole home on the open market. Bigger buyer pool, potentially higher sale price — but you have to fund the staircasing first.
We'll help you work out which option fits your situation.
When things go wrong
For repairs inside your home, you're usually the one who arranges them - but check with us first if you're not sure who's responsible.
For anything affecting communal areas, the building, or your safety, report it to our customer services team: enquiries@sparrowsharedownership.co.uk
For anything urgent — gas leaks, major water leaks, electrical failure, anything affecting safety — contact us immediately. Emergency repairs to communal areas get priority response.
If something's gone wrong, tell us - by phone, email, letter, or in person. We will listen and act.
Here's what happens:
We acknowledge your complaint within 5 working days.
Stage 1: we investigate and respond within 10 working days. A named person handles your case.
If you're not satisfied, you can escalate to Stage 2. We respond within 20 working days at this stage.
If you're still not happy after Stage 2, you can take it to the Housing Ombudsman. They're independent and free to use.
We won't always agree with you, and sometimes we'll be the ones who got it wrong. Either way, we'll be straight with you about what we found and what we're going to do about it.
Your share of your home is yours. It doesn't go back to Sparrow when you die - it forms part of your estate, like any other property you own.
What happens next depends on your will and your circumstances:
If you own jointly with a partner, husband, wife, or civil partner — and you hold the lease as joint tenants — your share passes automatically to the surviving owner. They carry on as the shared owner, paying the rent and service charge as before. They should let us know as soon as they're able.
If you own alone, or as tenants in common, your share passes to whoever inherits it under your will (or under the intestacy rules if you don't have a will). Your executor handles this as part of probate.
The person who inherits your share can usually choose to keep the home and continue as a shared owner (they'll need to meet the standard eligibility criteria and arrange their own mortgage if there's still one to pay), or to sell the share through the normal Sparrow sales process and take the proceeds.
If you're an executor or family member dealing with a Sparrow home after a bereavement, please get in touch as early as you can. We'll explain what needs to happen, and we'll be patient with timescales — probate often takes months. Rent and service charges still fall due during this period, but we'll work with the estate on payment arrangements where needed.