Shared ownership schemes are complex and not always fully understood – report

Schemes enable eligible buyers to purchase a property in portions over time, but barriers to doing this can include cost and complexity, the National Audit Office (NAO) said.

It said that limited government data means it is difficult to assess schemes’ overall performance.

But complexities around service charges and staircasing mean many who take up the scheme do not fully understand the longer-term financial risks, the NAO said.

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Service charges are payable by tenants and leaseholders to cover the costs of maintenance, management and services in communal areas in buildings and estates.

The report added: “There is currently no standardised format or terminology for service charges.

“Rental increases, service charge rises and, in some cases, building safety concerns have led to unsustainable costs over time, with some owners experiencing difficulties in selling their properties.

In January, the Government announced that millions of leaseholders across England and Wales stand to benefit from an overhaul of the leasehold system, with ground rents set to be capped at £250 a year.

But the announcement also sparked concerns over the impacts for investor confidence in the housing market.