Shared ownership – now the largest government-supported homeownership scheme for new buyers – is poorly understood by those who use it, with service charges rising as much as 170 percent in just two years, according to a critical report from the National Audit Office.
The watchdog found that fewer than one in 100 shared ownership holders managed to reach full ownership last year, raising questions about whether the scheme delivers the homeownership outcomes it promises.
Service charges hit households hard
Gareth Davies, head of the NAO, said the government lacks essential data to assess whether shared ownership remains affordable and well-managed over time. The report found service charges have increased by 140 to 170 percent in some cases over a two-year period – with shared owners having little recourse.
Despite being part-owners and part-renters, shared ownership holders face 100 percent of maintenance costs. The transaction costs involved in “staircasing” – gradually increasing the proportion owned – are making the process less affordable for many households.
This follows Landlord Knowledge’s coverage of leasehold reform, which highlighted how overlapping issues in the leasehold system affect both shared owners and traditional leaseholders.
Data gaps undermine oversight
The NAO report found significant gaps in government data collection. The Ministry of Housing, Communities and Local Government collects shared ownership data, but the information is incomplete, and the department does not address non-compliance from housing associations and local authorities.
All shared ownership properties are leasehold, meaning buyers face the same service charge and management issues that have plagued the wider leasehold sector. Communication about costs is often unclear, with no standardisation across providers.
With Help to Buy closed and Right to Buy restrictions in place, shared ownership now accounts for over one in ten new-build home sales. The scheme’s growing importance makes the NAO’s concerns more pressing for housing policy.
Rental market competition has eased in recent months, but alternatives to renting remain limited for many households unable to access traditional mortgages.
What this means for landlords
- If you’re considering selling to tenants: Shared ownership may be less viable than assumed – service charge risks and staircasing costs can trap buyers, potentially limiting their exit options from your property.
- Watch for: Government response to the NAO report – any reforms could affect how shared ownership competes with private renting as a housing option.
- Bottom line: The largest FTB support scheme is failing to deliver full ownership for most users – private renting remains the default for households unable to access traditional mortgages.
Editor’s view
Shared ownership was meant to be a stepping stone out of renting. Instead, for many, it has become a leasehold trap with rising charges and no clear path to full ownership. For landlords, this matters: if the main alternative to renting is broken, rental demand holds firm – but so does political pressure to fix a system that is failing renters and part-owners alike.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 26 March 2026
Sources: National Audit Office
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