Re-energising shared ownership

However, the housing market has changed beyond recognition in the past 40 years. The gap between incomes and house prices has widened to a point where the original concept of shared ownership – particularly in high-priced areas – has become more difficult to achieve.

Although an excellent product for many, potential buyers often misunderstand it. In recent years, the tenure has attracted criticism from politicians, the press and some of those who live in it. Also, despite its advantages, it has not fully established itself as a core product in the minds of potential buyers and many mortgage providers.

Since the early 1980s, shared ownership has also played a key role in supporting housing supply, and it will be needed to achieve the government’s target of building 1.5 million homes.

Given this ambition, we believe that the time is right to reflect, to take on board the criticism and make recommendations for improving and simplifying the tenure.

“Despite the criticisms, we believe that shared ownership can and should play a greater role in providing a secure home for the growing number of people who do not have access to social rented homes and cannot afford outright homeownership”

Clearly, this will not be straightforward, as many of the issues are exacerbated by problems with the leasehold system, building safety and high-density living. However, we need to understand the perspective of shared owners and see what can be done to improve their experiences where problems have arisen.

Some improvements to the model will need legislation, but now that a new Leasehold and Commonhold Reform Bill has been announced, there is a real opportunity for issues that particularly affect shared owners to be addressed.

Despite the criticisms, we believe that shared ownership can and should play a greater role in providing a secure home for the growing number of people who do not have access to social rented homes and cannot afford outright homeownership. We want to find solutions to improve shared ownership, recommending bold changes where necessary.

So, who are we? We are the Shared Ownership Council (SOC), formed in December 2023 following research and cross-sector consultation sponsored by Lloyds Banking Group. This project highlighted a range of issues with the shared-ownership model. Over 75% of consultees agreed the need for reform and supported the establishment of an industry-led group to improve the product.

The SOC is an independent voice that does not represent any group. Our ambition is to build on the achievements of the shared-ownership sector to date to drive a better consumer experience and support the growth of the tenure.

The SOC is an industry-led initiative to promote best practice in the delivery of shared ownership and drive clarity and consistency in the information available to consumers. We want to improve the tenure by working with both providers and leaseholders so that it can be delivered at greater scale to help more households who would otherwise rent.

The SOC operates as a forum based on collaboration, enabling the sharing of ideas and expertise. Our work is supported by individuals who have given their time to help make a difference and is underpinned by the funding received from over 24 partners, including both not-for-profit and for-profit housing associations, major lenders, mortgage advisors, house builders and other industry participants.

These organisations see the benefits of shared ownership, but also recognise the need for change and are committed to creating a better shared-ownership model.

“The next phase of our work will include a reform agenda for shared ownership with the aim of making the product more affordable, predictable and easier to understand”

At the end of June, we launched the Code of Good Practice as a first step to improving the consumer experience, irrespective of geography or type of property. The code has been developed by an experienced multi-stakeholder group and is currently being tested with the industry and shared owners. We have had over 500 responses since the launch, from past and present shared owners from across the country.

The consultation is open until the end of August and the consumer and industry surveys can be accessed through the SOC website. We are keen to receive as many responses as possible and would be delighted if you could promote the link with your shared owners. Equally, if you are interested in joining the council, then do get in touch.

The next phase of our work will include a reform agenda for shared ownership with the aim of making the product more affordable, predictable and easier to understand. We recognise that this will be challenging, as the various parts of the industry have different agendas, but we hope that by continuing to work collaboratively, we can reposition shared ownership as a valuable option to help tackle the nation’s housing crisis.

Ann Santry, chair, Shared Ownership Council