We’ve seen a growing interest in shared ownership from those looking to make that first step on to the property ladder. Yet for many, this route poses major issues regarding transparency and future fiscal consequences. Lee, a first-time buyer, has now chosen to return to the private rented sector. He thinks, “So at least you’re clear on what you’re dealing with.” He’s been a strong advocate for shared ownership, and he recently emailed us to help spread the word about its challenges. He pointed out that leasehold problems frequently overlap with this model.
Lee’s experience exemplifies the frustrations many face. This resulted in him being hit with surprise bills, amounting to almost £5,000, from Section 20 notices. These charges even covered the ridiculous expense of painting a wall in the association’s logo colors. In July 2024, he first put his home on the market for £250,000. By June, interest from potential buyers had completely dried up leading to a price cut to £215,000. He raised the issue that shared ownership schemes do not always deliver the transparency and security people hope for.
The chair of the Commons Housing Committee has underscored the importance of ensuring that future generations of homeowners are not ensnared in the complexities of shared ownership. This is the view expressed by Tom Copley, the deputy mayor of London for housing and residential development. Copley is indeed right to act on the fact that shared ownership homes are still unaffordable to many Londoners. They have pledged to ensure that no household pays more than 40% of their net income on housing.
This represents a critical opportunity for the federal government to respond to the overwhelming need for more affordable housing. They’ve challenged themselves to ambitious outcomes through their five-year affordable homes program. As the decision on California 2020’s ballot measure states, officials plan to build no fewer than 180,000 units for people least served by the private market. About 44,000 to 56,000 of these homes will be designated for homeownership. All but a handful of these homes are assumed to be made available through shared ownership schemes.
Florence Eshalomi MP has raised questions about how much of the recently announced £39 billion investment in social and affordable housing will be allocated toward shared ownership. Eshalomi has stated, “It is quite worrying when you see the amount of complaints going to the ombudsman – and 44% for London.” This points to an increasing worry about the quality of experience that shared ownership users are having.
Jo Short from the Shared Ownership Campaign speaks up for shared ownership as an option worth pursuing. She’s the first to admit that this model isn’t for everyone, but it gives an option to those who would otherwise find themselves excluded from the typical housing market. She further argues that these new changes could help shared ownership feel like a more appealing and transparent option. “The introduction of Key Information Documents for every shared owner, along with two-factor affordability assessments and greater flexibility all ensure that shared ownership will continue to evolve,” Short states.
Lee continues to question the actual affordability of shared ownership homes. He remarked, “They make it look affordable but there are a lot of snags that come with it,” pointing to hidden costs that can emerge unexpectedly. He pointed out that most buyers never find out about upcoming service charge hikes before closing. He pointed to other fees related to ownership that can surprise them.
The six-month nomination period for shared ownership sales further disadvantages many would-be buyers. minutes for more detail, SIP /EPA During this time window, housing associations or landlords have the sole power to identify a purchaser for the home. Unlike other land donations, Lee succeeded in having this period waived, giving him more flexibility in selling his property.
The government has pledged to invest £39 billion in affordable and social housing over the next decade. This investment should help deliver on that promise to build 1.5 million new homes. According to industry experts and advocates, there is a real need for more protections for people who are about to enter into shared ownership agreements.
As the conversation around housing policy moves forward, one thing is clear, transparency is still key. Stakeholders have asked for stronger engagement with residents and stronger clarity in how new charges are presented and rolled out. One anonymous source emphasized the need for collaboration with the sector: “I think it is around working with the sector about what steps they are putting in to improve this, and engaging with residents and the transparency of the charges.”
