'Wildy unaffordable': The harsh reality of shared ownership

"It felt good.

I felt I achieved something," says 35‑year‑old Riccardo.

They bought a 25% stake in the property, which had a total value of £440,000, through a housing association.

It meant paying a mortgage, rent on 75% of the property, and a service charge of around £90 a month.

The brothers saw it as a good investment and "more stable" than renting in the capital.

It also worked out at £50 a month cheaper than when they were tenants.

They say that despite the leaks, a broken lift, "dirty" communal areas and "no visible improvement to the property or complex", the monthly service charge has continued to rise to just under £300.

From April, she faces paying £683 per month in service charges on top of her rent and mortgage payments.

Housing costs, before bills, now take up more than half of her income.

"My net income is about £2,998 a month, and my housing costs are now over 50% of that.

It's just not sustainable."
Sugar's housing association said it understood her concerns about rising costs, and would contact her to provide clarity on charges.

The service charge for his one‑bedroom "affordable" flat was around £120.

Purchasers through the scheme must pass strict affordability checks, and for Andain, the mortgage, rent and service charges put him at the "limit" of what was manageable.

So when he received a "shocking" letter 18 months later saying his monthly service charge was going up to £327 - a sum he "absolutely just could not afford" - he was stunned.

The NAO says that the uncertain nature of service charge increases "poses the greatest risk to households whose initial affordability assessments leave them with limited financial headroom".

While the issue of service charges is being consulted on through the Leasehold and Freehold Reform Act 2024, George believes these charges should be regulated in a similar way to how social rents are capped.

Andain's housing association told us that a managing agent, appointed by a freeholder, sets the service charge and it had challenged increases and requested justifications.

That's the position George says he is now in.

"I feel trapped here," he says.

"If we wanted to start a family, we're going to be in a one‑bed flat until there's some kind of resolution."
'My one-bed flat's service charge is now £16K a year'