Is Shared Ownership a scam?
30 July 2025
There are lots of Shared Ownership myths that you’ll come across when researching the scheme, but one of the most common is arguably the simplest: Shared Ownership is a scam.
This is a common misconception. Shared Ownership is a government-backed scheme that’s been around since the Housing Act 1980, and more than 200,000 households in the UK live in a Shared Ownership property.
But let’s look into why people think that Shared Ownership is a scam, and the many ways in which this journey to home ownership is actually one of the most popular, cost-effective methods you can choose.
Why do people think Shared Ownership is a scam?
The main reason that people think Shared Ownership is a scam is that you’ll need to pay for a mortgage alongside paying rent to the landlord. People often associate paying rent with anything but home ownership, so the idea of renting your home may not make sense alongside being a homeowner.
However, once you understand the breakdown of costs, it becomes clearer:
- You’ll pay for a mortgage on the shares that you own
- You’ll then pay rent on the remaining shares, often calculated at a rate of 2.75% of the unsold equity
- You may also be required to pay a service charge or estate charge, depending on the specific property you’re buying
While this may sound strange if you’re unfamiliar with Shared Ownership costs, the total of your rent and mortgage payments will often be cheaper than renting from a private landlord. This is especially true if you’re looking at the kind of central London, new-build apartments that are available via Shared Ownership.
For example, a 1-bed apartment at our Acer Apartments development in White City, London, has the following breakdown:
- Mortgage term: 30 years
- Deposit: 5% (£8,250)
- Purchased share: 25% (£165,000)
- Full market value: £660,000
The estimated costs for this are as follows:
- Monthly rent: £660
- Monthly mortgage: £850
- Monthly service charge: £334
- Total monthly cost: £1,844
For comparison, the average cost of renting a 1-bedroom apartment in Hammersmith & Fulham is £1,944 – at least £100 more per month, with the insecurity that comes from renting privately.
Can you sell your Shared Ownership home?
Another common reason people think Shared Ownership is a scam is confusion around the sales process. If somebody is unfamiliar with how Shared Ownership works, it’s often assumed that selling your home will be an over-complicated process.
In fact, selling a Shared Ownership home is very straightforward. The main difference from a private sale is that your Shared Ownership provider will often have a nomination period, during which they have the opportunity to find a buyer for your share. But once this passes (typically four to eight weeks), the sales process is very similar to any traditional property transaction.
Shared Ownership myth busting
If there are any other misconceptions that have led you to believe that Shared Ownership is a scam, there’s a good chance that we’ve debunked them as part of our Shared Ownership mythbusting hub.
From not being able to decorate your property to Shared Ownership only existing in cities like London, there’s plenty of misinformation out there. If you have any other questions you’d like answered, get in touch with our friendly team, who can walk you through the process.