Recommendation 16

HM Government Acknowledged

33. The Government agrees with the Committee on the importance of specialist advice throughout all stages of the shared ownership journey, and a significant amount of work has been undertaken, and is ongoing, to ensure this is the case. 34. The Committee’s recommendation makes specific reference to timely and accessible advice on leases and lease extensions. As noted above, all of Homes England’s key information documents contain information about the lease extension process, including the nature of the costs involved. 35. As part of their development, the key information documents have been through a rigorous process of consumer testing. This showed that participants knowledge of shared ownership was significantly improved on reading the documents. All relevant key information documents must now be provided to buyers ahead of the completion of their purchase as a condition of government-grant funding. This can help to inform any discussions they choose to have with their registered provider during the application process, or with their solicitor during conveyancing. 36. Homes England’s model shared ownership leases contain a series of fundamental clauses that must be included in the final lease granted to a shared owner by the registered provider. These fundamental clauses govern the operation of shared ownership’s particular features, including the payment of rent, the resales process, and staircasing. The presence of these fundamental clauses means that the operation of these features is consistent across all forms of shared ownership offered by registered providers. This in turn can help to ensure that buyers have a clear idea of how the scheme will operate, and that these features can be readily explained by their registered provider and their solicitor during the application and conveyancing processes. 37. The government-funded Leasehold Advisory Service is available to provide free bespoke advice to shared owners on the terms of their leases. The Government notes the Leasehold Advisory Service’s response to the publication of the Committee’s report, and we look forwarding to working with them to ensure that the support and guidance they offer is given greater visibility to all leaseholders, including shared owners. 38. Finally, the Government publishes several pieces of advice and guidance for leaseholders on a range of subjects, such as leases extensions and service charges, that are of benefit to shared owners. These are publicly available in easily digestible summaries on Gov.uk and via the more detailed ‘Residential long leaseholders – A guide to your rights and responsibilities’. 39. We also agree with the Committee’s assertion that registered providers must be equipped to offer timely and accurate advice and guidance to their shared owners. Following the introduction of the Social Housing Regulation Act 2023, the Government has consulted on proposals to introduce a new regulatory competence and conduct standard for registered providers, including those selling and managing shared ownership homes. This standard will require senior managers and executives to have, or be working towards, a relevant qualification. It will ensure that registered providers’ staff have up-to-date skills, knowledge and experience, and that they deliver a high quality, professional service to their tenants and shared owners. 40. As part of its inquiry, the Committee heard in person evidence from registered providers who detailed their use of specialist teams to sell and manage and their shared ownership homes. We believe this is reflective of the approach of most registered providers with significant shared ownership portfolios, and it is not something that we would expect Homes England to enforce through their Capital Funding Guide. 41. It is also important to note, that there are already a variety of national and regional sector-led forums that convene regular meetings to discuss and share best practice regarding shared ownership, some of whom submitted written evidence to the Committee. These forums include the National Sales Group, the Shared Ownership Exchange, and the Shared Ownership Council. Homes England and the Government are in touch with these forums, meeting with them as and when required.