Shared ownership: where do we go from here?

However, increasing customer complaints, high levels of unsold stock and inconsistent government policy also mean we need a serious rethink on how we deliver shared ownership. The sector needs to move beyond just selling homes and must align this with supporting residents throughout their homeownership journey.

The Housing Ombudsman has reported a growing number of complaints from shared owners. Its 2024 Insight report on shared ownership found that disputes over service charges, rent increases and estate management have surged. Many buyers claim they were unaware of escalating costs at the outset, leaving them feeling trapped in a tenure that was meant to provide security and affordability.

Another key issue is the resale process. Shared owners looking to sell face a convoluted journey, waiting months for management packs and for providers to find a buyer, before they can turn to the open market. Unlike private developers, who refine their sales processes for efficiency, many housing providers have yet to adopt best practices to ensure smooth resales.

“A sector-wide commitment to better customer engagement is critical to restoring confidence in shared ownership”

Customer feedback must drive change. In the private sector, businesses adapt rapidly, based on customer insights. In housing, bureaucratic delays and third-party relationships often entangle residents in inefficiencies.

In 2024, the Levelling Up, Housing and Communities Committee (now called the Housing, Communities and Local Government Committee) reported that shared owners are often unclear about their rights to escalate complaints, leading to frustration and distrust. While resident panels exist, they don’t always influence policy in a meaningful way. A sector-wide commitment to better customer engagement is critical to restoring confidence in shared ownership.

Affordability remains a key factor. With house prices and mortgage rates fluctuating, shared ownership must remain a genuinely affordable alternative. However, some schemes fail to consider local buyer demographics. The Regulator of Social Housing found that a growing number of buyers seek more flexible tenure options.

Additionally, poor demand forecasting means that certain developments, particularly age-restricted properties, end up sitting vacant for long periods.

A robust approach to market appraisals, stress-testing, and sales and marketing strategies must be implemented before schemes launch. The lack of thorough stress-testing before developments go to market often results in stock that is misaligned with demand, creating high void levels. Private developers constantly adjust their pricing and marketing strategies based on real-time market data – shared ownership providers must do the same.

Government support for shared ownership is also at a crossroads. The former Conservative government expressed concerns over whether shared ownership truly delivers affordability, while Labour has indicated a stronger focus on social rent homes. The Housing Ombudsman’s report highlighted the uncertainty surrounding future government funding for shared ownership, with no new funding ringfenced beyond 2026.

For shared ownership to thrive, it needs firm government support, now more than ever. Financial incentives, stronger consumer protections and improved funding mechanisms would go a long way in ensuring affordability.

“Shared ownership continues to provide an accessible option. However, providers must work harder to win over buyers who are more informed and cautious than ever before”

Housemark data suggests that clear policy-backing could improve buyer confidence and sector stability significantly. The industry must also continue pushing for greater clarity on shared ownership’s role in the housing market to combat scepticism.

Where do we go from here?

I am a firm advocate for shared ownership – so much so, that I bought my first home through the scheme and even encouraged my siblings to do the same. Despite its challenges, shared ownership remains a crucial stepping stone for many aspiring homeowners.

I appreciate the complexities of the problem. The work of organisations such as the National Shared Ownership Group and the Shared Ownership Council to resolve these issues is commendable, but more must be done once we sound the collective alarm.

Several steps could be taken to reshape shared ownership and restore public confidence:

Improving transparency: Clearer communication about service charges, affordability and long-term costs would build trust among buyers.

Enhancing the resale process: Implementing system-driven solutions will accelerate the processing of management packs and streamline sales.

Stronger provider-buyer relationships: Regular engagement with residents will capture concerns and improve customer service.

In high-value markets like London, where traditional homeownership is increasingly out of reach, shared ownership continues to provide an accessible option. However, providers must work harder to win over buyers who are more informed and cautious than ever before. If private developers had the same challenges, they would act swiftly to remediate them. Shared ownership providers must adopt the same urgency.

As someone who has worked selling shared ownership homes for 20 years, I understand the operational challenges and still believe in its potential. However, the sector must evolve to stay relevant, and quickly resolve its issues.

Toyin Falade, director of TF Property Consultancy