Stories

Wed, 25 Mar 2026

Wed, 25 Mar 2026 'Wildy unaffordable': The harsh reality of shared ownership

For many, the promise of getting a foot on the property ladder has turned into a nightmare.

* Shared ownership is a government-backed scheme that allows eligible buyers to purchase a property in portions over time.
* A report by the National Audit Office (NAO) found that complexities within shared ownership can lead to financial risks for customers, including increasing service charges and rising costs.
* Jamie Sugar, who acquired her home through shared ownership, says she is struggling to afford her home after service charges rose to more than £8,000 per year - an increase of nearly 50% in under four years.
* The NAO report found that there are around 250,000 shared ownership homes in England and that service charge increases can create affordability pressures over time for shared owners.
* Shared owners are leaseholders and are obliged to pay 100% of the service charges, which cover costs such as buildings insurance, repairs, and maintenance.
* There is no official cap on service charges, but they are supposed to be set by a managing agent appointed by a freeholder.
* The report also looked at barriers to staircasing, where people can buy an additional share of their property, and found that increases in service charge costs can act as a barrier to this process.
* Some shared owners have reported being unable to sell their properties due to high service charges, which mortgage companies are unwilling to lend against.
* The NAO report suggests that the government needs to "make this scheme work better" to give people truly affordable housing.