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

5 items
2 Recommendation Fifth Report - Shared Ownership Rejected

Explore implications of changing shared ownership lease terms for proportionate service charges.

The Government should as a matter of urgency explore the implications of changing the terms of shared ownership leases delivered under current and previous iterations of the Affordable Homes Programme so that shared owners only ever have to pay service charges for repairs and maintenance proportionate to the size of …

Government response. The government rejects changing shared ownership lease terms for existing homes to ensure proportionate service charges, citing potential disruption and their focus on current legislative priorities. They will not consider major changes to the Affordable Homes Programme before its conclusion …
Ministry of Housing, Communities and Local Government
3 Recommendation Fifth Report - Shared Ownership Rejected

Collect and publish evidence to assess Rent to Buy and shared ownership viability and staircasing trends.

Rent to Buy may represent a better value for money product than shared ownership, but there is insufficient evidence to come to a firm judgement on this at present. Both Rent to Buy and Shared Ownership as affordable home ownership schemes need to be better understood in terms of their …

Government response. The government dismisses the urgent assessment of Rent to Buy vs. shared ownership, stating their similarity under AHP and inappropriateness for private schemes. While it has adjusted data collection for staircasing and will review publishing it, it rejects using this …
Ministry of Housing, Communities and Local Government
17 Recommendation Fifth Report - Shared Ownership Rejected

Update Homes England Capital Funding Guide to require specialist advice teams for shared owners.

We urge Homes England to update its Capital Funding Guide for shared ownership to specify that providers should only be selling shared ownership properties on the condition they set up and maintain specialist teams of professionals who can provide accurate, timely and accessible advice on leases and lease extension to …

Government response. The government agrees on the importance of specialist advice, noting existing information documents and ongoing work. However, it rejects the recommendation for Homes England to mandate specialist teams via the Capital Funding Guide, stating it's not something they expect to …
Ministry of Housing, Communities and Local Government
23 Recommendation Fifth Report - Shared Ownership Rejected

Update tenant satisfaction measures to include shared owners' satisfaction with repairs and maintenance.

We welcome the Government’s confirmation that the Regulator is preparing to introduce a new, proactive consumer regulation regime. However, for the next round of tenant satisfaction data collection, the Regulator must update the measures to include satisfaction with repairs and maintenance for shared owners. (Paragraph 116) Selling shares and building …

Government response. The government rejects the recommendation to include satisfaction with repairs and maintenance for shared owners in the next round of TSMs, stating shared owners are responsible for internal repairs and changes cannot be made for the current collection year. It …
Ministry of Housing, Communities and Local Government
25 Recommendation Fifth Report - Shared Ownership Rejected

Require providers to buy back shares from shared owners unable to sell due to remediation.

The Government should either require providers to buy back shares from shared owners in situations where they are trapped and unable to sell shares due to building remediation issues, or if not, set out the reasons why it has decided not to do this. It should also undertake an assessment …

Government response. The government rejects mandating providers to buy back shares from shared owners, stating it would lead to unintended consequences and is a commercial decision for providers. Instead, it encourages voluntary buyback and transparency about existing buyback policies.
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…