mg-8166What is an MHOS?
A Mutual Home Ownership Scheme is a new way of owning a stake in the housing market. It is designed to bring the bottom rung of the property ladder back within reach of households on modest incomes in areas where they are priced out of the housing market. It is designed to remain permanently affordable for future generations. Members of the society are the residents who live in the homes it provides. The society and not the individuals obtain the mortgage and so borrowing is cheaper.


How does it work?mg-8243
Each member has a lease which gives them the right to democratically control the housing community they live in. Members pay an equity share to the co-operative and retain equity in the scheme. After deductions for maintenance, insurance etc, these payments pay the mortgage. The payment that leaseholders pay each month is set at around 35% of net income.

As members leave, existing members can buy more equity shares, and as people’s income levels change their equity share commitments can also change. If someone leaves sooner than three years then they will not be entitled to increases in the value of their equity shares. The company keeps a set percentage of any increase in equity to ensure the sustainability of the project.


Find out more 
We are part of a growing network. To find out more, visit the UK MHOS network