Shared ownership sales rise 2% as buyers urged to consider full costs
A total of 18,603 initial shared ownership sales were completed by large private registered providers and local authorities between 1st April 2024 and 31st March 2025, up 2% on the previous year. Around 70% of those sales were to first-time buyers.
While the scheme continues to support thousands of households each year, Dane Westwood, construction performance bond specialist at CG Bonds, said buyers should look beyond the lower deposit and smaller mortgage typically associated with shared ownership.
Westwood said: “Shared ownership flats are usually part of larger blocks, so you pay service charges on top of your mortgage and rent. These cover things like lifts, communal areas, insurance and general upkeep.
“Buyers often focus on the smaller mortgage and forget to look at how service charges could change and rise over the next five or ten years.”
He also highlighted how rent on the unsold share can increase annually. “When you buy a share, you pay rent on the part you do not own. That rent usually goes up once a year and is linked to inflation, plus a small extra percentage written into your lease.
“If your rent is £360 a month and inflation is 4%, it could rise to £376.20. When inflation is higher, the jump can also be bigger. Buyers need to plan for that rather than assuming their payments will stay the same.”
Westwood added that staircasing to buy a larger share of the property can involve additional costs. “Shared ownership allows you to buy a bigger share over time. Some newer schemes let you start from 10% and increase in small steps each year.
“But every time you buy more, there are valuation and legal fees to pay. If property prices rise, the share you are buying becomes more expensive as well.”
On resale, he said: “When you come to sell, the housing provider usually has a set period to find a buyer. That can mean a slightly different process compared with selling on the open market. While the process differs, it ensures these homes remain available for the next generation of first-time buyers.
“It doesn’t stop you from selling, but it is something buyers should be aware of from the start.”
Westwood concluded: “Shared ownership can be a practical option for households earning under £80,000, or £90,000 in London, who cannot afford to buy outright, as the lower deposit is a real advantage.
“It’s important to consider mortgage payments, rent increases and service charges to get a full understanding of how much you will be spending.”
Source: The Intermediary
