Shared ownership is now the UK’s largest government-backed home ownership scheme but many buyers are entering it without fully understanding the risks.
A new report from the National Audit Office (NAO) has raised concerns over the complexity of the part-buy, part-rent model, warning that gaps in data mean the government cannot fully assess whether it is working for consumers.
The scheme has expanded rapidly over the past decade, with delivery rising from just over 11,000 homes in 2014-15 to more than 20,000 in 2024-25, accounting for around 11% of all new-build supply last year. London and the South East continue to dominate new shared ownership delivery.
But the NAO found that many buyers are unclear on long-term costs, particularly around service charges and the process of “staircasing” – where homeowners purchase additional shares in their property.
SERVICE CHARGES
Rising service charges and repeated transaction costs when increasing ownership stakes are among the key issues reported by customers, adding to affordability pressures over time.
The report also highlights significant gaps in government data, with incomplete reporting from housing providers making it difficult to track outcomes or assess risks across the lifecycle of shared ownership homes.
This comes as reforms under the Leasehold and Freehold Reform Act 2024 and the Renters’ Rights Act 2025 aim to strengthen leaseholder protections and improve security of tenure – changes that could further reshape how the scheme operates.
Gareth Davies, Head of the NAO, says: “Shared ownership remains an important route into home ownership, but it is complex, and weaknesses in information, affordability, data quality and redress mean that government does not yet have a full understanding of how the model works for consumers.”
AFFORDABILITY CHALLENGE
Chris Kirby, Head of Field sales for retail mortgages at Shawbrook, adds: “Affordability remains a significant challenge for first-time buyers, with many continuing to rent or adjust their expectations to get on the housing ladder.
“Schemes like shared ownership can provide an alternative route into homeownership, particularly for those with smaller deposits or where affordability for a standard mortgage isn’t an option.
“However, the investigation also points to gaps in the information available to buyers when assessing the longer-term financial implications.
“Recent developments such as the Leasehold and Freehold Reform Act 2024 and the Renters’ Rights Act 2025 may help address some of these challenges, but understanding the full picture remains essential.
“Anyone considering shared ownership should take time to fully understand how it works, including the long-term costs and commitments involved.”
