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Shared ownership: A couple’s struggle
Chris and Diana found themselves in a difficult situation after buying a shared ownership property in east London back in February 2020. Heralded as a way to enter the property market, shared ownership seemed like a feasible option. Unfortunately, the reality was far from ideal. “We had none of the rights of homeowners, and all the obligations of renters,” lamented Diana. The couple decided to sell in 2021 but faced obstacles during the nomination period where the housing association or landlord had the exclusive right to find a buyer. Eventually, they sold at a loss of £10,000. Diana described the experience as a “big con” and felt trapped by the scheme. This led them back to private renting which they found to be much simpler and easier.
Statistics reveal that there are currently around 250,000 shared ownership households in England, a significant number indeed. Despite an increase in shared ownership properties being delivered annually, complaints have surged. Records obtained through a BBC Freedom Of Information (FOI) Act request disclose a staggering rise of almost 400% in shared ownership complaints over the past five years. Repairs, costs, managing relations, and moving and selling properties were the most common complaints received by the ombudsman.
Kathy, who bought a 40% share in a two-bedroom flat in north London in 2017, shared her struggles with rising costs, including a £200 monthly increase in service charges. Repairs were slow, with some issues persisting for years. She was forced to take in a lodger just to keep up with the escalating expenses. The situation had become unsustainable, prompting thoughts of selling in the future.
Another shared ownership resident, Fatima, faced a similar predicament. A single parent, she resorted to shared ownership in 2019 after being evicted twice with her children. Now grappling with an 80% spike in service charges within a year, along with persistent repair issues, she expressed concerns about the scheme’s shortcomings and the stress it caused her. The complexity of shared ownership – involving multiple parties such as freeholders, managing agents, and housing associations – only added to the residents’ frustrations.
Acknowledging the challenges faced by shared owners, the government has committed to enhancing transparency and addressing fundamental issues within the shared ownership system. The Shared Ownership Council has introduced a code
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