What Housing Associations Build
Housing associations (also known as registered providers or RPs) are non-profit organisations that build, manage, and sell affordable homes across the UK. They are one of the most important routes to homeownership for buyers who cannot afford to purchase on the open market, and they deliver a significant proportion of all new build affordable housing in partnership with private developers.
In England alone, housing associations manage approximately 2.8 million homes and build around 40,000–50,000 new homes per year, making them major contributors to the new build housing supply. Their new build programmes are funded through a combination of government grants (via the Affordable Homes Programme), private borrowing, and sales revenue from shared ownership and outright sale homes.
Housing associations build and offer several different types of new build homes:
Major Housing Associations by Region
The UK has over 1,400 registered housing associations, ranging from large national organisations managing hundreds of thousands of homes to small, specialist providers focused on a single local area. Here are the major players by region:
National and Large Regional HAs
| Housing Association | Homes Managed | Key Regions | New Build Focus |
|---|---|---|---|
| Clarion Housing Group | ~125,000 | London, South East, East of England | Shared ownership, affordable rent, market sale |
| L&Q (London & Quadrant) | ~105,000 | London, South East, East of England | Major shared ownership and market sale developer |
| Peabody | ~104,000 | London, South East, East of England | Shared ownership, social rent, community-led |
| Places for People | ~95,000 | National (strongest in Midlands and North) | Mixed-tenure developments, shared ownership |
| Guinness Partnership | ~66,000 | National (London, South, West, Midlands) | Shared ownership, affordable rent |
| Sovereign Housing | ~62,000 | South and South West England | Shared ownership, social rent (merged with Network Homes 2025) |
| Notting Hill Genesis | ~66,000 | London and South East | Large-scale regeneration and shared ownership |
| Stonewater | ~39,000 | South, South West, Midlands | Shared ownership and affordable rent |
| Great Places | ~25,000 | North West, Yorkshire | Shared ownership and affordable rent |
| Thirteen Group | ~34,000 | North East England | Shared ownership, affordable rent, market sale |
When looking for shared ownership or other HA new build homes, the most effective starting point is the Share to Buy website (sharetobuy.com), which lists available shared ownership properties from HAs across England. You can also search directly on individual HA websites or ask the developer of a new build development which HA partner manages the affordable homes on that site.
The Application Process: Step by Step
Applying for a housing association new build home follows a structured process. While details vary between HAs and tenure types, here is the typical journey for a shared ownership purchase:
Eligibility Assessment: What You Need to Qualify
Eligibility criteria vary by scheme and HA, but for the most common product — shared ownership — the standard criteria are:
- Household income £80,000 or below (£90,000 in London)
- Income means combined gross annual salary of all buyers
- Self-employed: average of last 2–3 years’ accounts
- First-time buyers
- Previous homeowners who can no longer afford to buy
- Existing shared owners looking to move
- Must not currently own another property at completion
- Unable to afford suitable home on open market
- Must be able to sustain costs of homeownership
- No outstanding credit issues preventing mortgage approval
- Local connection may be required for S106 properties
Documents You Will Need
- Proof of income: Last 3 months’ payslips, P60, and latest tax return if self-employed
- Bank statements: Last 3–6 months showing your savings and outgoings
- Proof of identity: Passport or driving licence plus proof of address
- Credit report: The HA may ask you to provide a credit report or conduct their own check
- Mortgage agreement in principle (AIP): From a lender confirming the amount you can borrow. Many HAs require this before they will fully assess your application.
- Proof of deposit: Evidence of your savings or other deposit sources (e.g., Lifetime ISA balance, gifted deposit letter)
Affordability Checks: How Monthly Costs Are Calculated
The affordability assessment is a crucial part of the HA application process. It determines the share you can buy and confirms that you can sustain the ongoing costs of the home.
Components of Monthly Cost
Your total monthly housing cost on a shared ownership new build includes three elements:
The HA’s affordability assessment will check that your total monthly housing costs do not exceed approximately 40–45% of your net (take-home) household income. They will also stress-test the figures against potential interest rate rises, typically adding 1–2% to the current mortgage rate to ensure you could still afford payments if rates increase.
Deposit Requirements
For shared ownership, the deposit is calculated on your share only, not the full property value. Most lenders require a 5–10% deposit on the share you are buying. So for a 40% share of a £250,000 property (£100,000 share), a 5% deposit would be just £5,000. This is one of the key advantages of shared ownership for buyers with limited savings.
Your deposit can come from personal savings, a Lifetime ISA, gifted funds from family (with a gifted deposit letter), or in some cases an employer deposit loan.
Shared Ownership Staircasing
Staircasing is the process of buying additional shares in your shared ownership home, increasing the portion you own and reducing the rent you pay. Under the 2021 shared ownership model (which applies to all new shared ownership homes granted planning permission from April 2021), you can staircase in increments as small as 1% in the first 15 years of ownership.
How Staircasing Works
The cost of staircasing depends on the current market value of the additional share at the time you staircase (for 10%+ tranches). For 1% tranches in the first 15 years, the price is based on the original purchase value adjusted by an agreed index (typically CPI or RPI). A 1% staircase on a £250,000 property would cost approximately £2,500, making it an accessible way to gradually increase your ownership.
Once you own 100% of the property, you are the outright owner and no longer pay rent to the housing association. On houses, staircasing to 100% is almost always possible. On flats, the lease may restrict staircasing to a maximum of 80% in some cases, particularly where the freeholder needs to retain a financial interest for maintenance and management purposes.
Housing Register vs Direct Application
There are two main routes to accessing housing association new build homes, and the route depends on the type of home you are seeking.
For most new build buyers reading this guide, the direct application route is the relevant pathway. Shared ownership is the most common tenure for HA new build sales, and it operates on a direct application basis without the need to be on a housing register. However, if you are seeking a social or affordable rent property on a new development, you will need to be registered with the local council.
Tips for a Successful Application
Competition for housing association new build homes can be intense, particularly in popular locations. Here are practical tips to strengthen your application and speed up the process:
- Get your mortgage AIP early: Many HAs will not progress your application without a mortgage agreement in principle. Get this sorted before you start property searching. Use a broker experienced in shared ownership mortgages — not all lenders offer shared ownership products.
- Register on multiple HA portals: Don’t limit yourself to one housing association. Register on Share to Buy and directly with all HAs operating in your target area.
- Prepare your documents in advance: Have payslips, bank statements, ID, and credit report ready to submit immediately when asked. Delays in providing documents can mean losing a property to another applicant.
- Understand the costs fully: Don’t just look at the share price. Calculate the total monthly cost including rent, service charge, and any ground rent. Ask the HA for a detailed cost breakdown for the specific property.
- Be realistic about your share: Buying a larger share means lower rent but a bigger mortgage. HAs will assess the share you can afford based on your income and outgoings. Be prepared to buy a smaller share initially and staircase later.
- Check the lease carefully: Shared ownership leases can be complex. Your solicitor should review the lease terms, including rent review provisions, service charge estimates, staircasing rights, and any restrictions on subletting or alterations. See our guide to choosing a solicitor.
- Act quickly: Popular new build shared ownership homes can be reserved within days of being listed. If you have been assessed as eligible, be ready to move quickly when a suitable property becomes available.
For further guidance on buying a new build home, explore our shared ownership guide, government schemes eligibility checker, and first-time buyer guide. You can also browse available new build homes across the UK.