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'We will sue': residents fight sky-high service charges on affordable homes
The Observer
|March 02, 2025
Investigation finds shared-ownership flats are being hit by 'extortionate and unreasonable' fees, trapping people in homes they can't sell
Residents trapped in properties marketed as "affordable" are planning legal action against the government after being hit with service charges of up to £8,000 a year.
Shared-ownership homes are designed to allow people to get on the property ladder, with residents taking a mortgage on a share and paying subsidised rent on the rest. However, there are also service charges, which can initially be £250 to £350 a month. Once sold, some residents discover these charges can rise to £600 a month or more.
The Social Housing Action Campaign (Shac) will this week submit a dossier to the National Audit Office (NAO) on alleged service charge abuses, warning of inaccurate bills, overcharging and a failure to provide supporting evidence of costs.
It plans a judicial review if the National Audit Office refuses to investigate, warning that a chunk of the service charges are footed by the taxpayer in the form of housing benefit.
An investigation by the Observer reveals:
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