Recommendations & Conclusions
5 items
1
Conclusion
Fifth Report - Shared Ownership
Acknowledged
Shared ownership products can often become unaffordable over time due to having to pay for 100% of repairs and maintenance costs despite only owning a proportion of the property. This is exacerbated by the fact that these service charges can increase over time, along with other costs such as rent. …
Read more
Shared ownership products can often become unaffordable over time due to having to pay for 100% of repairs and maintenance costs despite only owning a proportion of the property. This is exacerbated by the fact that these service charges can increase over time, along with other costs such as rent. The 10 year repairs period only mitigates repairs and maintenance costs for those on the ‘new’ lease, and not those in properties delivered under the 2016–2023 Affordable Homes Programme. This, combined with the numerous and often unnecessarily expensive charges involved in the process of staircasing, makes it very difficult for many shared owners to complete their objective of staircasing to 100% and achieving their aspiration of full homeownership.
Show less
Government response AI summary
The government acknowledges concerns about the affordability of shared ownership and the disparity in repair periods, pointing to the existing 10-year initial repair period in the new model and ongoing improvements via the Leasehold and Freehold Reform Bill. It also states it will not consider …
Read full response →
Ministry of Housing, Communities and Local Government
16
Recommendation
Fifth Report - Shared Ownership
Acknowledged
It is unacceptable that shared owners are having to make significant financial decisions without appropriate advice being readily available, and we believe the Government must act to remedy this. We also believe that it is unacceptable that shared owners do not have the same statutory right to leasehold extension as …
Read more
It is unacceptable that shared owners are having to make significant financial decisions without appropriate advice being readily available, and we believe the Government must act to remedy this. We also believe that it is unacceptable that shared owners do not have the same statutory right to leasehold extension as other leaseholders.
Show less
Government response AI summary
The government agrees on the importance of specialist advice and details ongoing work, including mandating key information documents for buyers. However, the response does not explicitly address the committee's call for shared owners to have the same statutory right to leasehold extension as other leaseholders.
Read full response →
Ministry of Housing, Communities and Local Government
19
Conclusion
Fifth Report - Shared Ownership
Acknowledged
The changes brought to leases for shared ownership properties delivered under the 2021–2026 Affordable Homes Programme, while well-intended, risk creating an unnecessary and unfair ‘two-tier’ market where shared ownership homes delivered under the previous Affordable Homes Programme are considered less attractive properties, making them harder to sell. It is unfair …
Read more
The changes brought to leases for shared ownership properties delivered under the 2021–2026 Affordable Homes Programme, while well-intended, risk creating an unnecessary and unfair ‘two-tier’ market where shared ownership homes delivered under the previous Affordable Homes Programme are considered less attractive properties, making them harder to sell. It is unfair that the more generous minimum terms of the ‘new’ lease do not also apply to shared ownership homes delivered under the 2016–2023 Affordable Homes Programme.
Show less
Government response AI summary
The government acknowledges the concern about a two-tier market, stating it encourages providers to voluntarily offer new model terms but recognises significant practical barriers to broad application. It highlights that the Leasehold and Freehold Reform Bill will provide a statutory right for shared owners to …
Read full response →
Ministry of Housing, Communities and Local Government
22
Recommendation
Fifth Report - Shared Ownership
Acknowledged
The Government should ensure that there is more effective signposting to the Housing Ombudsman for shared owners; it should make it clear that the Ombudsman is their port of call for resolving disputes with landlords once internal mechanisms have failed to resolve an issue. One option would be to do …
Read more
The Government should ensure that there is more effective signposting to the Housing Ombudsman for shared owners; it should make it clear that the Ombudsman is their port of call for resolving disputes with landlords once internal mechanisms have failed to resolve an issue. One option would be to do this by updating the Key Information Documents, so that this information is clearly spelled out.
Show less
Government response AI summary
The government agrees shared owners need effective mechanisms for disputes and highlights existing robust frameworks, recent improvements, and requirements for registered providers to offer accessible information about complaints. It also notes new tenant satisfaction measures and a consultation on information access, but does not explicitly …
Read full response →
Ministry of Housing, Communities and Local Government
24
Conclusion
Fifth Report - Shared Ownership
Acknowledged
Shared owners can face considerable difficulty selling shares in their property, which many are prompted to do once rising costs reach unaffordable levels. Many are still waiting on their buildings to be remediated, without which they are legally unable to sell their shares and so end up trapped in properties …
Read more
Shared owners can face considerable difficulty selling shares in their property, which many are prompted to do once rising costs reach unaffordable levels. Many are still waiting on their buildings to be remediated, without which they are legally unable to sell their shares and so end up trapped in properties they can no longer afford. Providers currently have no obligation to buy back shares from shared owners or to allow shared ownership tenants to sublet. We welcome the Secretary of State’s recent 42 Shared Ownership intervention to allow providers more flexibility in allowing shared owners to sublet, and in buying back shares, but these decisions remain entirely at the provider’s discretion and more could still be done.
Show less
Government response AI summary
The government believes it is right to focus on ensuring people are not unable to sell their homes due to building remediation issues, while encouraging registered providers to consider buying back shares and making clear information on relevant policies available to shared owners.
Read full response →
Ministry of Housing, Communities and Local Government