Shared ownership: 'It was sold as a dream but became a nightmare'

BBC News

16-06-2025

Touted as a stepping stone to getting on the property ladder, shared ownership was designed to be one answer to a tough housing market. But behind the hope lies a growing wave of discontent, as complaints to the housing watchdog - over repairs, costs and selling - have soared."We had none of the rights of homeowners, and all the obligations of renters," said Diana, who together with her husband Chris, bought a shared ownership property in east London in February 2020.Shared ownership schemes involve purchasing a share of a property and paying rent on the rest.But the couple decided to sell in 2021 after finding it "traumatic".They said they had to try to sell through what is known as a nomination period during which the housing association or landlord has the exclusive right to find a buyer for the shared ownership home.Two years later and £10,000 worse off, after the property was re-evaluated at less than what they paid, they eventually sold."It's a big con and we felt trapped," said Diana."Not being able to sell was a trauma." They have gone back to private renting because, according to Chris, it is "much simpler and easier".Now out of it, Diana says she would not recommend the scheme because "they sell it to you as a dream but then it became a nightmare".
There are currently about 250,000 shared ownership households in England, according to figures. In 2019-20 there were about 202,000, according to the English Housing Survey. Although more shared ownership properties were being delivered year on year, the complaint figures, obtained via a BBC Freedom Of Information (FOI) Act request, show shared ownership complaints have risen by almost 400% in the past five years, and are continuing to rise. The FOI also found:There has been a rapid increase in the number of complaints the ombudsman has received relating to shared ownership tenures; in 2024 it received 1,564 - almost five times the 324 received in 2020Shared ownership complaints have risen faster than wider social housing onesOf the complaints made over the last five years, 44% were based in London, and the South East having the second highest number The most common complaints relate to repairs, costs, managing relations, and moving and selling properties.
Kathy bought a 40% share with a friend in a two-bedroom flat in north London in 2017. She pays a subsidised rent on the remaining 60%. "I don't have the bank of mum and dad. It was either that or put most of my salary into rent and have this feeling that I'd never be on the property ladder or have my own space," said the 44-year-old."I love my flat and the community. In terms of where the building is located and how close it is to London, these are all amazing things. "But it has mega downsides, particularly regarding finances and transparency and the level of service that we receive from the housing provider."
In the past eight years, she said her costs had increased so much, including more than £200 a month rise in service charges, that she has had to get a lodger and cannot afford to increase her share. Repairs take years to complete, she said, adding a buzzer was broken for a year and a sewage system has been faulty since 2012. "The sewage was overflowing and flowing directly into the river, and going into the children's playground. It stank in summertime," she said."They sent out all these consultants and they charged everything to us. The sewage system was not fit for purpose so why are we paying?"Kathy's housing association is not being named because her neighbours are scared it will devalue the property. "It's not affordable anymore. I have to have a lodger live in my house just to help me pay and keep my head above water," Kathy added."My long-term plan is to sell - I can't continue like this."
Fatima bought a shared ownership property in 2019 after being evicted from two rental properties when her two children were younger.As a single parent, she said there was "no way" she would have been able to get a mortgage so shared ownership was "the only option". Now "in a bind" due to an 80% increase in service charges within the last year, Fatima, along with others in the block, complained and said they would not pay the increase until it had been investigated. Repairs have been an issue for a long time, she said. When the BBC filmed at her flat, the communal corridors were heated to 31C (88F) and the lift was broken. "The biggest issue is all the heating costs that go into our service charges are heating the communal hallways. The building is cooking from the inside."
She said the shared ownership model was an "in-between option which could work if there weren't so many companies involved".There was a freeholder who had appointed a managing agent, as well as a housing association, she said. "We don't know who to go to, everything takes so long."Fatima added: "I have an asset but if it's unsellable and unaffordable it's not an asset."It's always on my mind. It causes a lot of anxiety."
'Relationship breakdown'
Housing Ombudsman Richard Blakeway said the "inherent complexities" of shared ownership presented challenges to landlords and residents. "Shared ownership has been around for decades, and there are still some inequities with the way in which it works that is driving complaints to us," he said.He described a "mismatch" between the expectation and understanding of the shared owner and the landlord. "Whilst it can start off as smiles, very quickly we can see that relationship break down."
He added the number of parties involved could be "depressing for a shared owner; that feeling of being passed from pillar to post and being fobbed off at different parts of the process"."I can also see from a landlord's perspective they don't necessarily always have all of the levers in their hands to resolve the issue," he said."Put all of that together and you've got a perfect storm - and that's what lands on our desks."He added that landlords must improve communication and transparency, and the government should address "fundamental inequities in the way in which shared ownership is designed".
The Shared Ownership Council, a cross-sector initiative, said while it believed shared ownership had a "key role to play" in addressing housing needs, it recognised it "has not always worked as well as it should for everyone" and "key challenges" need to be addressed."We take the concerns raised by the Housing Ombudsman and shared owners very seriously," it added.It has recently developed a code to "standardise best practices and consumer protection" ensuring, it says, "transparency, fairness, and improved support for shared owners in marketing, purchasing and management of homes".
'Drive up transparency'
But Timea Szabo from the campaign group Shared Owners network says it is "too little, too late"."This is a sector that has consistently failed to comply with their statutory obligations - some of the housing providers who back the code have multiple maladministration findings to their name," she said."We do not think that a voluntary code of practice will have much of an impact on their day-to-day experience."Figures shared exclusively with the BBC show 83 of 140 (59%) of Shared Owners members surveyed in February 2025 have struggled to sell their share, for reasons including unresolved building safety issues, high service charges, and a short lease that the shared owner cannot legally extend.A Ministry of Housing, Communities and Local Government spokesperson said it was "aware of the challenges faced by some who have entered the scheme".The spokesperson added the government was "considering what more can be done to improve the experience of shared owners, alongside consulting this year on implementing measures to drive up transparency of service charges, ensuring leaseholders and tenants can better hold their landlords to account".