Shared ownership involves buying a percentage of a home while paying rent on the remainder, and accounts for around 250,000 households in England. However, what was promised as an affordable path to home ownership has instead become a source of mounting frustration, with complaints to housing watchdogs increasing nearly 400% over five years.
Freedom of Information requests reveal that complaints jumped from 324 in 2020 to 1,564 in 2024, with London accounting for 44% of all grievances.
The most frequent complaints involve repair delays, escalating costs, poor management relationships, and difficulties selling properties.
Real-World Impact
Diana and Chris from east London purchased their shared ownership home in February 2020 but sold the property just over a year later, losing £10,000 in the process. They struggled with a mandatory “nomination period” where housing associations control sales, eventually returning to private rental for its simplicity.
Kathy, who bought a 40% share in north London in 2017, now faces service charge increases exceeding £200 monthly. Basic repairs take years—a broken buzzer remained unfixed for twelve months, while a faulty sewage system has operated improperly since 2012, with overflow reaching children’s play areas.
Single mother Fatima experienced an 80% service charge increase within one year, forcing residents to withhold payments pending investigation. Her building’s communal areas heat to 31°C due to system failures, creating unbearable living conditions.
System Failures
Housing Ombudsman Richard Blakeway identifies “inherent complexities” where multiple parties – freeholders, managing agents, and housing associations – create confusion and delays. This fragmented structure leaves residents uncertain about accountability while landlords lack complete control over solutions.
The mismatch between buyer expectations and reality creates what Mr Blakeway calls a “perfect storm” of dissatisfaction.
The Shared Ownership Council acknowledges the system “has not always worked as well as it should” and recently developed a voluntary code promoting transparency and fairness. However, campaign group Shared Owners Network dismisses this as “too little, too late,” noting that many code supporters have multiple maladministration findings.
Survey data shows 59% of shared owners struggle to sell due to unresolved safety issues, high charges, and lease complications they cannot legally address.
Rather than providing stepping stones to full ownership, many participants find themselves trapped in a deteriorating financial situation. Rising service charges, lengthy repair delays, and restricted selling options create anxiety and prevent the wealth-building the scheme promised.
For participants like Kathy, lodgers have become necessary to maintain affordability, while others like Fatima describe their properties as worthless assets. Sometimes the occupiers are trapped as they cannot sell the property and they struggle with the affordability of staying.
Government Position
The Ministry of Housing acknowledges challenges within the scheme and is considering improvements, including service charge transparency measures and enhanced landlord accountability mechanisms. However, timelines and implementation details remain unclear.
The investigation reveals how shared ownership, designed to help people on the road to property ownership, may instead be creating new forms of housing precarity for those it aimed to help.