**Shared Ownership: The Hidden Struggles Behind a Troubling Trend**
Shared ownership schemes have been increasingly promoted as a viable solution for individuals looking to enter the property market, especially in the context of rising housing costs and limited availability. Under this system, individuals purchase a percentage of a property while renting the remainder from a housing association. This was heralded as an accessible pathway for many, particularly first-time buyers grappling with the prospect of full homeownership.
However, reports are surfacing that paint a starkly different picture. Just hours ago, the story of a couple from East London, Chris and Diana, offered a glimpse into the troubling reality of shared ownership schemes. They expressed feelings of entrapment and frustration with the system, describing it as a “con.” The couple initially found hope when purchasing their shared ownership property in February 2020, seeking that elusive step onto the property ladder. Yet, after facing a series of challenges, they decided to sell just a year later. The experience turned out to be traumatic, ultimately costing them an additional £10,000 due to the property’s depreciated value.
“I felt trapped; we had none of the rights of homeowners and all the obligations of renters,” Diana shared, encapsulating the common sentiment of many shared owners. This has ignited a growing wave of dissatisfaction among shared owners, with complaints about repairs, escalating costs, and difficulties in the selling process surging dramatically. In fact, data from a BBC Freedom of Information request highlighted that complaints regarding shared ownership have skyrocketed by nearly 400% over the last five years.
The consequences of this inflation in complaints are significant. Nearly half of the complaints have emerged from London, where the housing market is particularly strained. Issues such as excessive repair times, burdensome service charges, and limitations on selling properties have formed the common grievances among shared owners. Kathy, another shared owner from North London, echoed similar frustrations. After purchasing a 40% stake in her flat in 2017, her financial burden rose so sharply that she had to seek a lodger to remain solvent. She noted how unresolved repair issues, including faulty sewage systems that have persisted for years, have increased her anxiety.
The frustration doesn’t end there. Fatima, a single parent grappling with increased service charges, has voiced her concerns about unsatisfactory heating and maintenance. After being forced into shared ownership when traditional mortgage routes were no longer viable, she now faces a significant financial strain that feels like a looming crisis. The numbers paint a worrying landscape, as many shared owners wrestle with the notion that their “asset” is becoming increasingly unaffordable and unsellable.
Housing Ombudsman Richard Blakeway has remarked on the “inherent complexities” of the shared ownership model, acknowledging a misalignment between the expectations of shared owners and the realities imposed by landlords. His observations extend to the notion of communication among multiple parties involved in these agreements, which can often leave owners feeling “passed from pillar to post.”
While collective initiatives like the Shared Ownership Council acknowledge these structural issues, they assert a commitment to enhance transparency and equity within the model. However, criticisms of these efforts suggest that many feel such measures are insufficient. Activists argue that the demand for compliance from housing providers is still unsatisfactorily low. According to the latest surveys, a staggering 59% of shared ownership members have struggled to sell their portions of property – underscoring a crisis that has reached critical levels.
The government has begun to recognize these challenges, with pledges to consult on improving the shared experience and nurturing greater regulation of the service charges. Yet, for individuals like Chris, Diana, Kathy, and Fatima, these bureaucratic maneuvers may come too late. As they navigate through what has evolved into a harrowing ordeal, the spotlight remains on shared ownership schemes and the urgent need for structural changes that can rectify a system that is purportedly designed to support, yet has left many feeling trapped.
The discontent echoes across regions, particularly in London, where the disparity between expectations and reality is most pronounced. As the complexities and inequities of shared ownership continue to surface, it becomes increasingly critical for authorities to act and reform this concept that many had hoped would be a bridge to homeownership, but which now feels more like a barrier.