Housebuilder Vistry has proposed a shared ownership model it says could deliver 30,000 homes a year towards the government’s 1.5m homes target.
The so-called Choice-led Shared Ownership model, set out in a white paper backed by a coalition of sector supporters, would let eligible first-time buyers purchase any qualifying new-build home of their choice on shared ownership terms, with – it is claimed – minimal public subsidy.
Under the proposal, buyers would need a minimum initial share of 60%, bought via a conventional mortgage, with rent of 3.5% payable on the remaining 40%. That portion would be funded through institutional capital, a lender-provided debt tranche and a proposed 1% equity contribution from the National Housing Bank. Buyers could increase their share over time through staircasing, potentially reaching full ownership.
Vistry said the model is designed to complement rather than replace existing shared ownership provision, and would target the “squeezed middle” of aspiring homeowners – those closer to buying on the open market than traditional shared owners, but still locked out by deposit requirements and lender affordability tests.
The white paper, developed with Newbridge Advisors, was informed by consultation with more than 35 organisations between February and April 2026, including registered providers across all nine English regions, institutional investors, and government representatives.
The report sets out five potential benefits of the model: improved affordability and choice for buyers; the delivery of up to 150,000 homes over five years; a reduction in grant requirement of up to £10.5bn compared with traditional grant-funded shared ownership; deposit requirements cut by up to 40%; and greater visibility over housing costs through a defined rent formula.
The paper also recommends establishing a Choice-led Shared Ownership taskforce in 2026, bringing together homebuilders with support from the Ministry of Housing, Communities and Local Government, to develop an operational model, build an investor pipeline, and market the model to consumers.
Stephen Teagle, chief executive, partnerships and regeneration at Vistry, said: “This report demonstrates that Choice-led Shared Ownership is implementable and scalable, offering a practical route to more accessibility and affordability for first-time buyers. It also has the potential to make a significant contribution to GDP and housing delivery, with minimal reliance on public subsidy.
“It is clear that momentum is building behind this concept. Government and the housing and investment sectors now have an opportunity to turn that momentum into action, supporting economic growth while helping more first-time buyers access to high-quality new homes.”
Alex Notay, chief executive at The Housing Forum, said: “Tackling the housing crisis requires all elements of the housing ecosystem to be firing on all cylinders and this white paper on Choice-led Shared Ownership is a strong contribution to that collective effort.
“It directly reflects the priorities set out in The Housing Forum’s most recent Housing Solutions report; especially the need to widen access for first-time buyers by modernising shared ownership income limits, improving consumer choice, and creating clearer, more flexible routes into ownership.
“We have called for practical, cost-free measures that government can swiftly enact to unlock supply and support new buyers. These proposals align with that agenda and help to move the sector towards solutions that are genuinely responsive to first-time buyer needs.”
Paul Rickard, chief executive at Pocket Living, said: “For the first time in 60 years there is no support for first-time buyers. Our recent first-time buyer commission illustrated the importance of new sector-led ideas and the creative thinking in this report frames the debate we need in order to support home builders, home buyers, and leverage in institution investment that remains nervous of UK residential housing. Critically, this proposal also has the potential to support SMEs like Pocket as much as national providers.”
The model remains under development, with discussions ongoing between Vistry, the National Housing Bank, policymakers and organisations across the housing sector.
Main image: Stephen Teagle, chief executive, partnerships and regeneration at Vistry
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