Buyers say they were misled over likely rise in costs after they moved in, which are now ‘ruining people’s lives’

Housing associations are facing allegations of mis-selling so-called “affordable” homes, with service charges that have soared, in some cases by more than 400%, after residents moved in.

Marketing and property documents examined by the Observer reveal how buyers who may be struggling financially are enticed to buy shared ownership homes with estimated monthly service charges as low as £120. Residents accuse housing associations of failing to accurately reflect the likely cost, which in some cases has risen to more than £650 a month.

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