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Riccardo and Simone Bertagna, twin brothers from north London, initially felt a sense of pride when they purchased a 25% share of a three-bedroom flat in Seven Sisters. Valued at £440,000, their ownership came with not only a mortgage but also rent on the remaining 75% of the property and a monthly service charge of approximately £90. For the 35-year-old Riccardo, this arrangement marked an achievement and a step toward stability, offering costs roughly £50 lower than their previous rent payments.
However, their experience soon turned challenging. After an external leak severely damaged the flat, ongoing disputes about maintenance responsibilities, rising service charges, and unresolved issues like a broken lift and neglected communal areas have left the brothers feeling trapped. Despite the flat’s deteriorating condition, their monthly service fees have increased to nearly £300. Their housing association states that it is investigating their concerns and insists that shared ownership obligations are clearly explained prior to purchase.
Shared ownership, a government-supported scheme, aims to help eligible buyers—those earning under £80,000 (or £90,000 in London) who cannot afford full homeownership—to gradually buy a property through a social landlord, often a housing association. Despite being England’s largest affordable homeownership program, a recent National Audit Office (NAO) report highlights the scheme’s complexities, warning that participants frequently encounter unexpected rises in service charges and do not always grasp the financial risks involved. This scheme also faces variations in Scotland, Wales, and Northern Ireland.
Many shared owners find rising service charges particularly burdensome. Jamie Sugar, a single mother who owns a 25% share of a three-bedroom flat to house herself, her child, and disabled mother in north London, reports that her service charges have surged by nearly 50% over four years, now costing more than £8
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