Source · Select Committees · Housing, Communities and Local Government Committee
Fifth Report - Shared Ownership
Housing, Communities and Local Government Committee
HC 61
Published 28 March 2024
Recommendations
6
Accepted
Para 57
Relatives of deceased OPSO owners face unexpected and unfair service charge liabilities.
Recommendation
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 …
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Government Response Summary
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 with the sale of their home.
Ministry of Housing, Communities and Local Government
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12
Accepted
Para 72
Develop a clear understanding of Right to Shared Ownership for future Affordable Homes Programme evaluation.
Recommendation
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 …
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Government Response Summary
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
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13
Accepted
Require Government to collect and analyse data on Right to Shared Ownership take-up.
Recommendation
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 …
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Government Response Summary
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
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15
Accepted
Para 91
Mandate Homes England ensure providers include lease guidance and signposting in Key Information Documents.
Recommendation
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 …
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Government Response Summary
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
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18
Accepted
Ensure leasehold extension legislation applies equally to all shared ownership properties and leaseholders.
Recommendation
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 …
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Government Response Summary
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 the same rights as other leaseholders.
Ministry of Housing, Communities and Local Government
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Conclusions (2)
14
Conclusion
Accepted
Para 90
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 Summary
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.
21
Conclusion
Accepted
Para 114
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 Summary
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.