Select Committee · Housing, Communities and Local Government Committee

Shared Ownership

Status: Closed Opened: 19 Jul 2023 Closed: 28 May 2024 17 recommendations 8 conclusions 1 report

The LUHC’s Committee’s inquiry will examine the challenges associated with shared home ownership schemes, including barriers to achieving full home ownership and whether shared ownership is genuinely an affordable route to owning a home. The Committee is also likely to explore challenges around reselling, affordability issues such as service charges and maintenance responsibilities, and questions …

Clear

Reports

1 report
Title HC No. Published Items Response
Fifth Report - Shared Ownership HC 61 28 Mar 2024 25 Responded

Recommendations & Conclusions

7 items
6 Recommendation Fifth Report - Shared Ownership Accepted

Relatives of deceased OPSO owners face unexpected and unfair service charge liabilities.

It can come as an unpleasant shock during a difficult time to relatives of deceased shared owners to find out that they are liable to pay service charge costs when their relative living in an OPSO property has died, despite the fact that there is no longer anyone living in …

Government response. The Government and Homes England will amend the OPSO key information documents to clarify financial liabilities for beneficiaries and will consider mandating registered providers to include this information on their websites, while also offering providers options for supporting shared owners …
Ministry of Housing, Communities and Local Government
12 Recommendation Fifth Report - Shared Ownership Accepted

Develop a clear understanding of Right to Shared Ownership for future Affordable Homes Programme evaluation.

There is currently an evidence gap around Right to Shared Ownership, as a new product. It is unclear what the level of demand for this product is; what sort of value for money it represents; and what the likelihood is of achieving 100% homeownership through it. The Government must develop …

Government response. The government commits to collecting data on Right to Shared Ownership sales through its CORE dataset, including buyer characteristics, initial share purchased, and staircasing transactions, in order to build a clear understanding of the product.
Ministry of Housing, Communities and Local Government
13 Recommendation Fifth Report - Shared Ownership Accepted

Require Government to collect and analyse data on Right to Shared Ownership take-up.

The Government should actively collect and analyse data on Right to Shared Ownership, to better understand supply and demand for this emerging product. This data should include: the level of take-up of the Right to Shared Ownership; the characteristics of those who have exercised their right in this regard; the …

Government response. The government commits to collecting data on Right to Shared Ownership sales through its CORE dataset, which will include information on buyer characteristics, initial share purchased, and staircasing transactions, largely addressing the committee's request.
Ministry of Housing, Communities and Local Government
14 Conclusion Fifth Report - Shared Ownership Accepted

Shared owners lack access to advice on leasehold tenure and lease extension complexities.

It is clear that many shared owners lack access to advice and guidance which can explain to them clearly and impartially the complexities of leasehold tenure and their rights and responsibilities under their shared ownership lease, as well as advise them on lease extension. There is a lack of awareness …

Government response. The government states that Homes England's key information documents already provide relevant advice and guidance on shared ownership, including links to the Leasehold Advisory Service, and confirms ongoing dialogue to improve these documents.
Ministry of Housing, Communities and Local Government
15 Recommendation Fifth Report - Shared Ownership Accepted

Mandate Homes England ensure providers include lease guidance and signposting in Key Information Documents.

Homes England should ensure that providers include simple guidance on lease arrangements within the Key Information Documents distributed to shared owners, including information on how rights and responsibilities are allocated and guidance on how to extend the lease. It should also make sure it is clearly signposting to existing advice …

Government response. The government states that Homes England's key information documents already include relevant lease information, rights/responsibilities, lease extension processes, and signposting to advice services like LEASE, thus fulfilling the recommendation.
Ministry of Housing, Communities and Local Government
18 Recommendation Fifth Report - Shared Ownership Accepted

Ensure leasehold extension legislation applies equally to all shared ownership properties and leaseholders.

Finally, the Government should ensure that any legislation passing through Parliament which has provisions to reduce the cost of, and simplify, the process of leasehold Shared Ownership 41 extension (for example, as in the Leasehold and Freehold Reform Bill) also applies to leaseholders in shared ownership properties, so that shared …

Government response. The government accepts the recommendation, confirming that shared owners will benefit from the Leasehold and Freehold Reform Bill's provisions, including a new statutory right to extend leases at a peppercorn ground rent, and other reforms to ensure they largely have …
Ministry of Housing, Communities and Local Government
21 Conclusion Fifth Report - Shared Ownership Accepted

Shared owners lack effective complaint mechanisms and awareness of Housing Ombudsman escalation.

Shared owners need a proper mechanism through which to feed back dissatisfaction with repairs, maintenance and other aspects of the management of their property. Based on the evidence we have received, many shared owners are clearly unaware of the option of escalating unresolved complaints to the Housing Ombudsman, suggesting that …

Government response. The government agrees on the need for complaint mechanisms and states that a robust framework already exists, which has seen recent improvements including new tenant satisfaction measures and a consultation on access to information requirements.
Ministry of Housing, Communities and Local Government

Oral evidence sessions

2 sessions
Date Witnesses
18 Dec 2023 Emma Payne · Department for Levelling Up, Housing and Communities, The Baroness Penn · Department for Levelling Up, Housing and Communities View ↗
4 Dec 2023 Clare Miller · Clarion, Dr Alison Wallace · Centre for Housing Policy, University of York, Helen Spencer · Great Places Housing Group, Oliver Boundy · Anchor, Professor Stanimira Milcheva · University College London, Steve Collins · Rentplus-UK, Sue Phillips · Shared Ownership Resources View ↗

Correspondence

4 letters
DateDirectionTitle
20 Feb 2024 To cttee Letter from Shared Ownership Resources to the Chair regarding a follow up to or…
30 Jan 2024 To cttee Letter from the Chief Executive of Rentplus to the Chair regarding the Committe…
30 Jan 2024 To cttee Letter from the Minister for Housing and Communities to the Chair regarding the…
17 Jan 2024 To cttee Letter from the Chair to the Parliamentary Under Secretary of State for Housing…