Shared ownership homes: buying, improving and selling
Repairs and home improvements
You will need to pay for repairs and maintenance no matter what share you own.
Some costs might be covered by the building warranty, or by the landlord if your home has an ‘initial repair period’. Check the ‘key information document’ for the home to see if it has an initial repair period. The landlord will give you a copy of this document before you reserve your home.
You need to have your boiler serviced every year by an engineer on the Gas Safe Register.
Home improvements, decoration and structural changes
You can paint, decorate and refurbish a shared ownership home, for example replace a kitchen or bathroom. Your landlord is not responsible for this.
You might need written permission from your landlord to make structural changes. Check with your landlord what you need permission for.
Changes to your home may increase or decrease its market value. This can affect the price if you buy shares of 5% or more in the future.
Homebuilders recommend not decorating new-build homes in the first year. This is because you may need to redecorate again after the building materials like timber and plaster have had time to dry out and settle.
External and structural repairs
The building warranty will usually cover the cost of structural repairs in the first 10 or 12 years for new-build homes.
For flats, the building owner (usually the landlord) will arrange external and structural repairs needed. The cost will be divided between you and the other flat owners in the building if the reserve fund does not cover the cost. Check with your legal adviser to confirm what is in your lease.
There are different rules if your lease includes a ‘initial repair period’.
If you buy a home through a shared ownership resale, any remaining period on the building warranty will transfer to you.
Cladding costs
If your home is in England, you may need to pay towards replacing cladding or to fix other safety problems with your building.
If your lease includes an ‘initial repair period’
If you bought a shared ownership home in 2021, it might have an ‘initial repair period’ in the lease.
During the initial repair period, the landlord is responsible for the cost of some repairs and cannot:
- use the reserve fund (‘sinking fund’) to pay for repairs that are their responsibility
- use the service charge to pay for external and structural repairs
You’ll still need to pay the service charge if your home has an initial repair period.
An initial repair period usually lasts for 10 years and only applies if you own less than a 100% share of your home. After the period ends, all repairs are your responsibility.
What repairs are included
During the initial repair period, the landlord is responsible for the cost of:
- essential repairs to the outside of the building
- essential structural repairs to walls, floors, ceiling and stairs inside your home
You can also claim up to £500 a year from the landlord to cover repairing, replacing (if faulty) and maintaining fixtures and fittings that:
- supply water, gas or electricity - for example sinks, baths or pipes
- heat your home, for example a boiler or radiator
It does not include:
- installing other fixtures (such as kitchen cabinets) and fittings (such as a bed or sofa)
- installing appliances that use your gas, electricity or water supplies, such as ovens or washing machines
- repairs covered by the building warranty or any other guarantee
If you break the terms of your lease, your landlord will not need to pay for repairs they’re normally responsible for. For example, if you:
- cause damage on purpose
- do not arrange routine servicing and maintenance, such as regular boiler servicing
If the repairs are covered by the building warranty or another guarantee, check the warranty or guarantee documents to find out how to claim for the repairs.
What to do if your home needs essential repairs during this period
You must tell the landlord that the repairs are needed. The landlord will decide if they are essential. They have the right to inspect the home when making a decision.
You’ll need to arrange the repairs yourself and claim a repairs allowance from your landlord to cover the cost. You can claim up to a certain amount a year (usually £500). You’ll need to pay for costs above this amount yourself.
You must use a Trustmark-approved tradesperson or professionals approved by your landlord. You can find a local tradesperson on the Trustmark website.
If you do not claim the full repairs allowance in one year, a maximum of one year’s allowance will roll over to the following year.
Example of how the repairs allowance works if you claim in years 2 and 3
| Repairs allowance | Allowance claimed for repairs | Amount rolled over to next year | |
|---|---|---|---|
| Year 1 | £500 | £0 | £500 |
| Year 2 | £1,000 (£500 + £500) | £750 | £250 |
| Year 3 | £750 (£500 + £250 | £0 | £500 |
If you sell the home, the repairs allowance will usually transfer to the new owner. If the new owner buys a 100% share, they do not get the repairs allowance.
If the landlord rejects your claim
If the landlord rejects your claim for the cost of essential repairs, they must:
- tell you why in writing within 7 days of receiving the information that supports your claim
- tell you that you have the right to challenge the decision
- explain how you can challenge it