When you buy a shared ownership, a government-backed scheme where you buy part of a home and rent the rest from a housing association. Also known as shared equity, it’s meant to help people who can’t afford a full mortgage get on the property ladder. But behind the low down payment and monthly payments that seem manageable, there are real shared ownership problems that catch most first-time buyers off guard.
One big issue is the rent on your unpaid share, a monthly payment you make to the housing association for the portion of the home you don’t own. This rent doesn’t stay fixed—it can go up every year, often tied to inflation or a fixed percentage, and you have no control over it. Even if you own 75% of the home, you’re still paying rent on the other 25%, and that rent can eat into your savings faster than you expect. Then there’s staircasing, the process of buying more shares over time until you own 100%. Sounds great, right? But each step costs thousands in valuation fees, legal fees, and mortgage arrangement charges. Many people get stuck halfway because they can’t afford the next bump, and suddenly they’re paying rent on 50% of a home they can’t sell easily.
Another problem? Selling. If you want to move, you can’t just list it on Rightmove. The housing association has the first right to find a buyer, and they often limit who can buy—usually only other shared ownership buyers. That cuts your pool of potential buyers by 80%. Plus, if your home’s value drops, you still owe the same amount for your share, even if the market says it’s worth less. And don’t forget service charges, building insurance, and ground rent—all extra costs that pile up and aren’t always clear until you’re deep in the contract. These aren’t minor annoyances. They’re structural flaws in the system that make shared ownership feel less like a stepping stone and more like a trap with a pretty sign.
And yet, people still sign up because they’re told it’s their only chance. But if you’re thinking about it, ask yourself: Are you ready for the long-term costs, the limited resale options, and the fact that you’ll never fully own your home unless you can afford to buy out the rest? The posts below break down exactly how these problems show up in real life—from rent spikes that surprise buyers to staircasing fees that wipe out savings. You’ll see real examples of what goes wrong, what people wish they’d known, and how to spot the red flags before you commit.
