Home Ownership: 3 Big Downsides You Should Know

• by Corbin Fairweather
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Everybody dreams of finally owning their own place. Shared ownership homes make that goal look more doable, but few people really talk about the catches. Sure, you pay less up front, but there are some real headaches that can pop up after you’ve signed the paperwork.

Let’s get straight to it: owning a home—especially a shared one—isn’t just about picking paint colors. You’ve got hidden costs, surprise rules, and selling down the road can be way trickier than most people expect. If you’re thinking about going down this path, it pays to know exactly what you’re getting into before you commit. A little heads-up now could save you from big regrets later.

• Hidden and ongoing expenses
• Limited control and flexibility
• Selling is not as easy as you think
• Unexpected rules and restrictions
• Tips to sidestep common headaches
• What to consider before signing up

Hidden and ongoing expenses

Ask anyone who’s owned a shared ownership place—they’ll tell you the monthly cost goes way beyond just the mortgage. You don’t just pay for your share of the property; you also pay rent on the part you don’t own. This ‘rent’ usually goes up every year, because it’s tied to the Retail Price Index (RPI), which measures inflation. In 2024, the average shared ownership rent increased by about 7%, and service charges jumped closer to 8%. That’s a lot to budget for.

Here’s where it stings: even though you own part of your home, you’re still hit with extra fees. Expect service charges for things like building repairs, shared hallways, cleaning, and sometimes even gardening. These are not optional, and they rarely go down. Some folks in new builds have seen service charges leap by over £500 a year without much notice.

Let’s break down a typical set of monthly costs for a shared ownership home in the UK for 2025:

So, for a shared ownership home, you could be paying over a grand a month—sometimes more than renting privately. Add in unexpected repairs, and you’re on the hook for your share, even if the issue is in a shared hallway or roof. Housing associations can pass these costs straight to you. In some cases, people have had to cough up thousands in surprise repair bills with just a few weeks’ notice.

Bottom line: don’t let the low down payment or split ownership fool you. Always ask for a full breakdown of all ongoing and possible expenses before signing anything. Check service charge histories—most housing associations should provide this if you request it. Plan for yearly cost rises, not just the mortgage rate. It’s better to know what you’re in for than get caught short.

Limited control and flexibility

Most folks picture their shared ownership home as a blank canvas, ready for whatever updates or changes they’re dreaming about. But in reality, you don’t get the same freedom you’d have in a fully owned place. For starters, you only own a portion, so you can’t simply knock out walls, build an extension, or swap out windows on a whim. Every change usually needs approval from the housing association, which can be slow and full of paperwork.

Even smaller things, like changing flooring, repainting the exterior, or getting a pet, sometimes mean jumping through extra hoops. Shared ownership leases often come with thick booklets of rules about what’s allowed. Some associations ban certain types of flooring because of noise, or limit the kind of satellite dishes or security systems you can install. There’s also no guarantee you’ll get a yes, even if your request seems simple.

And then there’s renting. Think you’ll Airbnb your spare room for some quick cash? Usually not allowed. Most shared ownership agreements have strict rules against subletting. If life changes—say, you need to relocate for a new job—you can’t just rent out your place and keep it ticking over. Your only real option is to sell your share, which isn’t always quick or easy (but that’s a whole other headache for later).

If flexibility is a priority for you, especially as your life changes, shared ownership can feel really limiting. It’s smart to read every rule in the lease and ask loads of questions before signing anything. Look out for any deal breakers—you don’t want to get stuck in a place where you can’t make it your own or adapt when life throws you a curveball.

Selling is not as easy as you think

You’d think selling your slice of a shared ownership home would be just like flipping a regular house. Not really. It’s a different game with more hoops to jump through, and you don’t get the final say on how and when things happen.

One big stumbling block is the housing association or landlord. They often have a legal right to shared ownership resale for a set period (usually 8 to 12 weeks), which means you can’t just stick your home on the open market from day one. During this "nomination period," the housing provider tries to find a buyer from their list, and you’re left waiting.

"Most shared owners hoping for a quick sale can be surprised to find it takes an average of 12 to 14 weeks just to get an offer through nominations, and more if no buyer is found quickly," says the UK government’s MoneyHelper service.

If your housing association can’t find anyone in that trade-in window, only then can you go to estate agents like everyone else. But even then, selling part-ownership isn’t as appealing to buyers as a full-title property—they have to qualify for shared ownership and agree to the terms. It’s often a niche market, so your pool of buyers is much smaller than you might expect.

Here’s a quick look at how the shared ownership selling process compares to regular sales:

The final price is also sometimes decided by an independent surveyor, not what someone offers, which can be a nasty surprise if property values dip. There might also be extra fees from the housing association for admin, surveys, or legal checks. If you’re budgeting for your move, don’t forget these costs.

• Always check your resale terms before buying into a shared ownership scheme.
• If you think you’ll want to move in a couple of years, think hard—selling can be slow and unpredictable.
• Once you’ve found a buyer, brace for more paperwork and back-and-forth than you’d expect selling a regular place.

Selling a shared ownership home isn’t impossible, but it’s definitely not plain sailing. Go in with your eyes open and don’t assume you can cash out just because you feel like it.

Unexpected rules and restrictions

One of the biggest surprises for people in shared ownership homes is bumping up against rules they never saw coming. These aren’t just little things—they can hit your wallet, your freedom, and even your ability to make your home truly yours.

For example, it’s pretty common that you can’t just rent out your home or even a single room. Most housing associations require written permission to sublet, and some ban it entirely. Think about that before you accept a job in another city or want to cover your mortgage for a few months.

Major changes? You’ll almost always need permission to do big renovations—sometimes just painting your front door a different color needs approval from the landlord or the housing association. It feels like you own the place, but you’re still dealing with landlord-style rules.

Some schemes also put limits on who you can sell your share to, or even tell you when and how you’re allowed to increase your ownership. This is called ‘staircasing,’ and normally, you have to staircase in set chunks, like 10% at a time. Sometimes there are caps on the maximum share you can own—so 100% ownership might not be in the cards.

Check out these common restrictions and how often people run into them:

A good tip: Always read the small print before you sign anything. Ask the housing provider direct questions, like “Can I ever own 100%?” or “What’s the process if I want to rent it out for a year?” If the answers aren’t clear or don’t fit your plans, it could be a sign you need to look somewhere else.

Tips to Sidestep Common Headaches

If you’re seriously looking at buying through shared ownership, you need to know how to avoid the classic slip-ups people make. Here are real, practical moves you can make to keep surprises to a minimum.

• Read the lease thoroughly. A ton of shared ownership headaches come from not knowing what’s in the contract. Watch for rules about subletting, pets, and modifications. Some leases have strange clauses—like needing written permission to hang new blinds.
• Budget for all costs, not just the mortgage. That monthly rent on the unowned share, plus service charges, repairs, and ground rent, can add up fast. In 2023, the average service charge for London shared ownership was about £1,800 per year. Some developments are charging way more, especially as buildings age and need work.
• Check the staircasing details. If you want to own a bigger share later, find out how much it’ll cost and if it’s actually allowed. Some schemes limit you to 80% max, and the price for the next chunk is based on the property’s current value—not what you paid.
• Get everything in writing. Verbal promises about repairs, improvements, or fees mean nothing. Once you get the paperwork, double-check it matches what you’ve been told.
• Research the managing agent or housing association. Look for online reviews and ask around. Some associations are slow to reply, hard to deal with, or hit you with unexplained charges. Recent data shows that almost 30% of shared owners have serious issues getting repairs done in a reasonable timeframe.

Shortcut: Before making any big decisions, talk to someone already living in a shared ownership home in your area. You’ll get the honest details—stuff brochures never mention—and pick up a few tricks for dodging the worst hassles.

What to consider before signing up

Signing up for shared ownership homes isn’t something to rush. Get into the details first—trust me. One thing tons of buyers miss is reading through every line of their contract. Small clauses can end up costing you, so if you aren’t sure, get someone with experience in property law to take a look.

Ask about all the monthly costs. You’ll have your mortgage, but on top of that you’ll pay rent on the part you don’t own and potentially high service charges. Some housing associations bump these charges up yearly, and by more than inflation. In 2022, the average service charge for shared ownership flats in London hit over £2,000 per year, so always ask to see the full breakdown up front.

Another thing—who maintains what? In most shared schemes, you’re responsible for repairs inside your flat or house, even if you only own half. But the outside? That’s usually up to the freeholder. It gets murky if there’s a leaky roof affecting your flat, so clear up who pays for what before you sign.

• Double-check rules about subletting and making changes to the property. Some places have strict bans on letting out your home or even painting doors a different color.
• Plan for the future—are you hoping to "staircase" (buy a bigger share later)? Some schemes set a cap, so you might never fully own your place.
• Find out the process for selling. In most contracts, you have to give the housing association first refusal, which can seriously slow things down.

If possible, talk to people already living in the development. They’ll tell you stuff you won’t see in the brochure, like noisy neighbors, parking issues, or slow repairs.

Home ownership brings freedom, but shared ownership comes with its own set of rules. Don’t just get excited by the lower deposit. Take your time, do your homework, and ask questions—even the uncomfortable ones. It’s your money and your future, so make sure you go in with your eyes wide open.