Why people don’t fully understand shared ownership

• A report by the National Audit Office (NAO) has found that shared ownership schemes, designed to support affordable home ownership, are often complex and not fully understood by those who enter into them.
• The report highlights that shared owners face issues such as increasing service charges, complex lease arrangements, and additional transaction costs when attempting to buy a larger share of their property.
• Limited government data makes it difficult to assess the overall performance of these schemes and their long-term affordability for consumers, according to the NAO.
• Gareth Davies, head of the NAO, stated that the government lacks a full understanding of how the shared ownership model works for consumers due to weaknesses in information, affordability, data quality, and redress.
• While the government acknowledges challenges and states it has strengthened shared owners' rights and improved transparency, critics argue that more action is needed to address the cost pressures and complexities faced by participants.

IN FULL

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