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
16
Acknowledged
Para 92
Ensure appropriate advice is readily available for shared owners making significant financial decisions.
Recommendation
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 …
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Government Response 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.
Ministry of Housing, Communities and Local Government
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22
Acknowledged
Para 115
Update Key Information Documents to clarify Housing Ombudsman role for shared owners.
Recommendation
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 …
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Government Response 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 commit to updating Key Information Documents for clearer Ombudsman signposting.
Ministry of Housing, Communities and Local Government
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Conclusions (3)
1
Conclusion
Acknowledged
Para 36
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. …
Government Response 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 major changes to the Affordable Homes Programme to address this issue before April 2026 due to potential disruption.
19
Conclusion
Acknowledged
Para 100
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 …
Government Response 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 extend leases, offering a more effective solution.
24
Conclusion
Acknowledged
Para 133
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 …
Government Response 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.