UK startup automates shared ownership process to tackle housing crisis

London-based Stairpay has raised £750k in Pre-Seed funding to help first-time home buyers navigate the shared ownership process — and ultimately move to full ownership.

For individuals facing challenges entering the (overcrowded) UK housing market, shared ownership offers a potential solution. This government scheme allows buyers to purchase a share of a property (usually between 25% and 75%), while paying rent on the rest to a housing association that co-owns it.

“Shared ownership is just one way of facilitating gradual home ownership,” Floris ten Nijenhuis, founder of Stairpay, told TNW.

Automating shared ownership

Founded in 2022, the startup has developed a platform that automates the process for both residents and housing associations — from initial purchase to staircasing (the move towards full ownership) and share resales. The platform also comes with a dedicated app for residents.

According to ten Nijenhuis, what sets Stairpay’s technology apart is its data-driven approach.

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“The biggest issue currently is data,” he said. “There’s no tracking of people’s finances after initial purchase so the landlord can’t support them in their journey to 100% homeownership.”

Stairpay gathers data from residents and uses it to inform landlords on how they can help them move up the ownership ladder.

“By seeing the data across all landlords we can [also] see what works across different regions, property types, salary bands, and so on,” ten Nijenhuis said.

The startup has partnered with housing association Clarion, social enterprise Places for People, and property portal for shared ownership Share to Buy. During a recent two-month pilot with Clarion, Stairpay reported a 50% increase in staircasing transactions.

With the fresh capital, the startup plans to team up with more housing associations and further develop its platform. It’s also considering a future expansion to the US market. Fuel Ventures led the funding round with participation from Heartfelt Ventures and a series of angel investors.