The number of UK households jointly owned by two people who aren’t in a romantic relationship has climbed by 9.2% since 2015, reaching 236,000 homes. That figure tells you something important: buying property with friends or family is no longer a fringe idea — it’s becoming a mainstream route onto the ladder. I’ve been watching this shift for a while now, and the pattern is clear. Affordability is squeezing people out of solo ownership, and more buyers are looking for a practical workaround rather than waiting years to save enough on their own.
What these numbers really mean is that a lot of people are quietly realising they don’t have to go it alone. The average first-time buyer is now 34 years old, and saving a deposit on a single income takes years. Pooling resources with someone you trust can cut that timeline dramatically. But here’s the catch — and it’s a big one — doing it without a proper legal agreement can unravel everything. I’ve seen too many stories where a handshake deal turned into a costly dispute. Here’s what you actually need to know.
How joint property ownership actually works in the UK
The most important thing to understand is that there are two legal ways to own a property together, and they work very differently. Most people don’t realise the choice has major consequences for what happens if someone dies, wants to sell, or falls behind on payments. Let me break it down simply.
Joint tenancy is the default for married couples and civil partners. It’s simple, but it’s also rigid. If you buy with a friend and choose joint tenancy, you’re effectively saying you want everything to go to them if you die — not to your parents or siblings. That’s a big decision to make without realising it.
Tenants in common is the more flexible option, and it’s usually the better choice for friends or family buying together. Each person owns a specific share — it doesn’t have to be equal. You could own 60% and your friend 40%, for example, reflecting different deposit contributions. And crucially, you can leave your share to whoever you want in your will. Up to four people can be tenants in common on one property.
What I’d do in this situation: I’d choose tenants in common every time when buying with someone who isn’t my spouse. It gives you control over your share and avoids forcing a sale or transfer if circumstances change. A good mortgage broker can explain how lenders view each structure and help you decide which works for your situation.
Why this matters more than you think
The biggest risk isn’t a falling out — it’s the financial trap that opens up when one person can’t pay. When you buy jointly, lenders treat each person as responsible for the full mortgage amount. That means if your co-buyer loses their job, you’re on the hook for the whole payment. Miss a payment and both your credit scores take a hit, not just theirs.
Research from Lloyds Bank shows that 60% of people cite affordability as their main reason for buying jointly, and 56% say trust in their co-buyer is key. But trust doesn’t pay the mortgage. A survey by Barratt Homes found that 28% of Brits worry most about disagreements over household finances. That’s a real concern, because once you’re in a joint mortgage, you can’t just walk away.
Here’s a scenario that plays out more often than you’d expect: two friends buy a flat together. One gets a job offer in another city and wants to sell. The other can’t afford to buy them out and doesn’t want to move. Without a written agreement, they’re stuck. The only option is to sell the property, possibly at a loss, and split the proceeds. That’s why 43% of people say the biggest concern is what happens if one person wants to sell.
What I’ve noticed is that most people focus on the excitement of buying a home and skip the uncomfortable conversations about what happens when things go wrong. A clear co-ownership agreement isn’t just paperwork — it’s the thing that keeps a friendship intact when money gets tight.
Where people go wrong with joint property purchases
The mistakes I see most often aren’t about bad intentions. They’re about assumptions. People assume they’re on the same page about money, timelines, and what happens if life changes. The data backs this up. Let me walk through the most common pitfalls.
Skipping the legal agreement entirely
This is the biggest one. A handshake or a verbal agreement has no legal standing if a dispute arises. Solicitors increasingly recommend a deed of trust or co-ownership agreement to formalise shares and protect each party’s interests. Without one, you’re relying on the default rules of joint tenancy or tenants in common, which may not reflect what you actually agreed. A deed of trust can specify exactly how much each person contributed, how sale proceeds are split, and what happens if someone wants out. It costs a few hundred pounds and saves thousands in legal fees later.
Ignoring the impact on future borrowing
This catches a lot of people off guard. Even though you split the mortgage payments with your co-owner, lenders treat each of you as responsible for the full amount. That means when you apply for a personal loan, a car finance deal, or another mortgage, the lender sees the entire mortgage commitment on your file — not just your half. It can reduce how much you can borrow for years. If you’re planning to buy your own home later, this is a serious constraint.
Not planning for life changes
Life happens. Someone gets married, has a child, loses a job, or wants to move cities. Without an agreed process for these events, you’re left negotiating under pressure. A good co-ownership agreement should cover: what happens if someone wants to sell, how the remaining owner can buy them out, what happens if someone can’t pay their share, and how disputes are resolved. The time to agree this is before you exchange contracts, not after.
→ Scroll right to see all columns
| Concern | Percentage of respondents | What it means in practice |
|---|---|---|
| One person wants to sell | 43% | Without agreement, the whole property may need to be sold |
| Disagreements over finances | 28% | Unclear cost-sharing leads to tension and potential default |
| One person can’t pay their share | Not separately surveyed | Remaining owners must cover the shortfall or risk credit damage |
What I’d do differently: I’d sit down with my co-buyer and a property lawyer before making an offer. A one-hour consultation can flag issues you’d never think of — like how inheritance tax applies to your share, or what happens if one of you becomes bankrupt. It’s money well spent.
How to buy property with friends or family the right way
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Choose the right legal structure from day one
Decide between joint tenancy and tenants in common before you instruct a solicitor. If you’re buying with a friend or sibling, tenants in common is almost always the better choice. It lets you own unequal shares, leave your share to anyone in your will, and sell your share independently. Make sure the solicitor drafts a deed of trust that records each person’s contribution, how ongoing costs are split, and what happens on sale. This document is your safety net.
Get a mortgage that works for joint buyers
Not all lenders treat joint borrowers the same way. Some are more flexible about non-romantic co-ownership. A good mortgage broker can help you find a deal that doesn’t penalise you for buying with a friend. Be upfront about your arrangement — hiding it could invalidate your mortgage. Also check whether the lender allows tenants in common, because some prefer joint tenancy.
Agree an exit plan in writing
This is the step most people skip, and it’s the one that causes the most problems. Your deed of trust should include: a clear process for selling, a formula for how sale proceeds are split, a right of first refusal so the remaining owner can buy the departing share, and a timeline for resolving disputes. If you can’t agree, the agreement should specify mediation before court action. A well-drafted co-ownership agreement turns a potential crisis into a manageable process.
Plan for the unexpected — including death
If you’re tenants in common, your share doesn’t automatically go to the other owner. That means you need a will that says who inherits your property share. Without one, the intestacy rules kick in, and your share could go to a relative you didn’t intend. If you’re joint tenants, the share passes automatically to the survivor — which might not be what you want. Update your will to reflect the arrangement, and make sure your co-buyer knows what happens if you die.
- 1Choose tenants in commonThis gives you flexibility on shares, inheritance, and selling independently. Instruct a solicitor to draft the deed of trust.
- 2Find a joint-buyer-friendly lenderUse a mortgage broker who understands non-romantic co-ownership. Compare deals that allow tenants in common.
- 3Write a detailed co-ownership agreementCover contributions, cost-sharing, sale process, buyout terms, and dispute resolution. Get it signed and witnessed.
- 4Update your willSpecify who inherits your property share. Review it whenever your circumstances change.
Frequently asked questions about buying property with friends or family
Can I get a mortgage if I already have a joint mortgage with a friend? ▾
What happens if my co-buyer stops paying their share? ▾
Can I sell my share without the other owner’s permission? ▾
Is buying with a friend cheaper than buying alone? ▾
What’s the difference between a deed of trust and a cohabitation agreement? ▾
Buying property with friends or family can work well, but only if you treat it like a business arrangement from the start. The legal structure, the mortgage, and the exit plan all need to be agreed in writing before you exchange contracts. That’s not being pessimistic — it’s being sensible. A real estate lawyer can help you draft the documents that protect everyone involved.
If this was useful, you might also want to read UK property speculation: risky gamble or smart investment strategy.
Sources and Further Reading
Luxury homes for less: finding affordable opulence in unexpected UK locations — A practical look at where your money goes further in the UK property market.
Shared ownership rises thanks to family and friends. Estate Agent Today, 2026.
Homeownership Options 2026. Barratt Homes, 2026.
