Shared ownership is becoming a trap for too many – here’s how we can fix it
4 min read
Shared ownership has helped many first-time buyers onto the housing ladder, but it’s increasingly clear the model isn’t working as intended – particularly for flats.
High and unpredictable service charges, alongside rising rents on the unsold share, mean too many buyers find themselves stuck, unable to afford to staircase (up their share) or move on.
This matters more than ever. Since Help to Buy ended, shared ownership has become the government’s main route into homeownership. The National Audit Office reports that shared ownership homes made up around 11 per cent of all new-build supply in 2024/25. Once a niche product, it is now the largest government-supported homeownership scheme for new buyers.
At HomeOwners Alliance, we hear from shared owners every day – and the experiences are stark. Many feel they’ve bought into a system they didn’t fully understand, where costs spiral, control is limited and options are restricted.
It also raises a fundamental fairness issue: shared owners can be paying 100 per cent of the service charges despite only owning a share of the property. That simply doesn’t reflect the reality of part-ownership and leaves many carrying all the costs without the full benefits.
Satisfaction levels underline the problem. Only 48 per cent of tenants in low-cost home ownership accommodation report being satisfied with their landlord’s overall service, compared with 71 per cent in low-cost rental accommodation. That gap should be ringing alarm bells.
And it’s not just anecdotal. Findings from parliamentary select committees, the National Audit Office and campaigning groups all point in the same direction: the model needs reform.
The problems are most acute in flats, where service charges, building safety costs and major works can quickly become unaffordable. Houses tend to avoid some of these issues, and satisfaction is higher. In 2023/24, 65 per cent of shared ownership sales in England were houses, compared with 33 per cent flats and maisonettes.
The core problem is structural. Shared ownership asks people to take on the financial risks of ownership without giving them the same rights or protections. Many are in new-build homes, yet have weaker consumer protections than buyers might expect. The New Homes Ombudsman, still voluntary, excludes shared owners. This must change when the government finally makes it mandatory.
Shared ownership is not a simple product, but it is often presented as one. It’s a long-term financial commitment, yet too often only the short-term benefits are emphasised. When things go wrong, navigating the system can be daunting. The work of the Leasehold Advisory Service is vital in helping shared owners understand their rights, but the fact so many need this support highlights how complex and opaque the system has become.
There are signs of progress. The Shared Ownership Council’s new code is a positive step, setting clearer expectations around transparency, fairness and customer service. If properly enforced, it could help rebuild trust. Crucially, the code is grounded in the real experiences of shared owners, shaped by over 1,800 responses and dedicated focus groups held across the country.
But voluntary codes are not enough. Homes England, the Greater London Authority and the Regulator of Social Housing should make adherence to the code a condition of funding and oversight. If providers want public money, they should meet enforceable standards. Lenders, too, should require membership as a condition of a mortgage.
More fundamental reform is needed. Service charges and major works costs should be shared in proportion to ownership. Rent increases must be predictable and reflect local markets, not simply track inflation. And shared owners need greater flexibility, including the ability to sublet and to move more easily.
Shared ownership can play an important role in helping people access homeownership but only if it is fair, transparent, and genuinely affordable over the long term.
If the model is to survive, it must start working for the people it was designed to help, not just the system that sustains it.
Paula Higgins is CEO and founder of HomeOwners Alliance
