'Wildy unaffordable': The harsh reality of shared ownership

## Summary
Shared ownership is a government‑backed affordable housing scheme that allows eligible buyers - those who cannot afford a full deposit and mortgage and whose household income is below £80,000 (or £90,000 in London) - to purchase a property in portions over time to help them move into home ownership. In England, it is the largest affordable housing scheme for home ownership. 'It's just not sustainable' But Jamie Sugar, who acquired her home through the scheme, says: "I don't think it's affordable at all." Sugar is a single parent and bought a 25% share of a three‑bedroom flat in north London to share with her child and disabled mother. It's just not sustainable." "I knew there would be service charges," she says, "but shared ownership was advertised as affordable housing." Sugar's housing association said it understood her concerns about rising costs, and would contact her to provide clarity on charges. The Shared Owners' Network said: "We are calling on the NAO to build on this report and launch a Value for Money investigation to determine whether the shared ownership scheme truly provides affordable homes, meets its policy objectives, and makes effective use of public funds." The National Housing Federation and the government said shared ownership remains an important route onto the housing ladder, but acknowledged challenges for some buyers, particularly around rising service charges.

## Article Content
'Wildy unaffordable': The harsh reality of shared ownership
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Tarah Welsh
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Jade Thompson
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Patrick Duffy calls the shared ownership scheme "messy and complicated"
When twin brothers Riccardo and Simone Bertagna bought a share of a three-bedroom flat in Seven Sisters, north London, they told me they felt "proud".
"It felt good. I felt I achieved something," says 35‑year‑old Riccardo.
They bought a 25% stake in the property, which had a total value of £440,000, through a housing association. It meant paying a mortgage, rent on 75% of the property, and a service charge of around £90 a month.
Twin brothers Simone (left) and Riccardo initially saw their shared ownership home as a good investment
The brothers saw it as a good investment and "more stable" than renting in the capital. It also worked out at £50 a month cheaper than when they were tenants.
But a few years ago the flat was devastated by an external leak. Rising service costs and disputes about who was responsible have left the brothers feeling "trapped" in an "unsellable" home.
They say that despite the leaks, a broken lift, "dirty" communal areas and "no visible improvement to the property or complex", the monthly service charge has continued to rise to just under £300.
Their housing association told us their concerns are being investigated and that shared ownership responsibilities are clearly set out before purchase.
Riccardo and Simone are among a hundred or so people who have contacted Your Voice, Your BBC News about issues they face in shared ownership properties.
Shared ownership is a government‑backed affordable housing scheme that allows eligible buyers - those who cannot afford a full deposit and mortgage and whose household income is below £80,000 (or £90,000 in London) - to purchase a property in portions over time to help them move into home ownership.
The homes are usually sold through a social landlord, often a housing association.
A report out today from the National Audit Office (NAO) says complexities within shared ownership mean customers can be caught out by issues such as increasing service charges, and many who take up the scheme don't fully understand the longer-term financial risks.
There are forms of shared ownership in Northern Ireland, Scotland and Wales. In England, it is the largest affordable housing scheme for home ownership.
'It's just not sustainable'
But Jamie Sugar, who acquired her home through the scheme, says: "I don't think it's affordable at all."
Sugar is a single parent and bought a 25% share of a three‑bedroom flat in north London to share with her child and disabled mother. She 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.
From April, she faces paying £683 per month in service charges on top of her rent and mortgage payments. Housing costs, before bills, now take up more than half of her income.
"My net income is about £2,998 a month, and my housing costs are now over 50% of that. It's just not sustainable."
"I knew there would be service charges," she says, "but shared ownership was advertised as affordable housing."
Sugar's housing association said it understood her concerns about rising costs, and would contact her to provide clarity on charges.
There are around 250,000 shared ownership homes in England.
The NAO investigation found that service charge increases could create affordability pressures over time for shared owners. Shared owners are also leaseholders and, while they may only own a small share of the property, they are obliged to pay 100% of the service charges.
Service charges cover the costs of buildings insurance, repairs and maintenance to the exterior of the properties, such as the cleaning of shared spaces or upkeep of communal gardens. There is no official cap on charges, but they are supposed to be "reasonable".
George Andain says shared ownership was his "only chance of getting a foot on the property ladder".
He bought a 45% share of a flat worth £340,000 in central Brighton in 2021. He says his mum and brother "explicitly asked the question about service charges", but they were reassured that they were unlikely to increase drastically.
The service charge for his one‑bedroom "affordable" flat was around £120.
George Andain says he "just could not afford" his monthly service charge increase
Purchasers through the scheme must pass strict affordability checks, and for Andain, the mortgage, rent and service charges put him at the "limit" of what was manageable.
So when he received a "shocking" letter 18 months later saying his monthly service charge was going up to £327 - a sum he "absolutely just could not afford" - he was stunned.
In the same year, he also received notification that the housing association had underestimated the previous year's service charge, and he and other homeowners received an extra bill for more than £2,000.
The NAO says that

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## Expert Analysis

### Merits
- They say that despite the leaks, a broken lift, "dirty" communal areas and "no visible improvement to the property or complex", the monthly service charge has continued to rise to just under £300.
- The Shared Owners' Network said: "We are calling on the NAO to build on this report and launch a Value for Money investigation to determine whether the shared ownership scheme truly provides affordable homes, meets its policy objectives, and makes effective use of public funds." The National Housing Federation and the government said shared ownership remains an important route onto the housing ladder, but acknowledged challenges for some buyers, particularly around rising service charges.

### Areas for Consideration
- The NAO says that the uncertain nature of service charge increases "poses the greatest risk to households whose initial affordability assessments leave them with limited financial headroom".
- While the issue of service charges is being consulted on through the Leasehold and Freehold Reform Act 2024, George believes these charges should be regulated in a similar way to how social rents are capped.

### Implications
- The NAO investigation found that service charge increases could create affordability pressures over time for shared owners.
- Shared owners are also leaseholders and, while they may only own a small share of the property, they are obliged to pay 100% of the service charges.
- George Andain says he "just could not afford" his monthly service charge increase Purchasers through the scheme must pass strict affordability checks, and for Andain, the mortgage, rent and service charges put him at the "limit" of what was manageable.
- So when he received a "shocking" letter 18 months later saying his monthly service charge was going up to £327 - a sum he "absolutely just could not afford" - he was stunned.

### Expert Commentary
This article covers shared, service, ownership topics. Notable strengths include discussion of shared. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 1456.