Residents of so-called ‘affordable’ homes are threatening legal action against the government over soaring service charges, with some facing annual fees of up to £8,000.
Shared-ownership properties, designed to help people onto the housing ladder by combining a mortgage on a share of the home with subsidised rent, have left many struggling with unexpected service charge hikes.
Initial fees of £250–£350 a month have, in some cases, more than doubled after purchase, rising to £600 or more.
But The Guardian reported on Saturday that the Social Housing Action Campaign (Shac) plans to submit a dossier to the National Audit Office (NAO) this week, alleging overcharging, inaccurate bills and a lack of transparency.
JUDICIAL REVIEW
If the NAO refuses to investigate, Shac intends to apply for a judicial review, highlighting that part of these charges is covered by taxpayer-funded housing benefits.
At the former Pickle Factory in Bermondsey, London, residents in affordable flats say they must use a separate entrance – dubbed a ‘poor door’ – while contributing to services enjoyed by private flat owners, including a concierge.
And north of the river in Islington, shared-ownership residents have seen charges climb to more than £7,400 a year, with some warned they could face repossession if they fail to pay.
HIGHER CHARGES
Wayne Baxter, a marketing professional, saw his service charge jump from £337 a month in 2022/23 to £617 in 2024/25 for his 25% share in a £670,000 flat.
“These are not affordable homes,” he said. “If I’d known charges would rise like this, I wouldn’t have bought.”
Shac is calling for stricter regulation of service charges, with penalties for landlords and housing associations imposing unjustified fees.
Ministers have pledged to consult on new measures under the Leasehold and Reform Act 2024, aiming to enhance transparency and protect homeowners.
