New Shared Ownership Code launches in bid to standardise offer and drive investment

Given the shortages of comparable data for the tenure in some areas, the code will also ask providers to submit staircasing data to the CORE data reporting system, even when this is not a grant funding requirement.

The final version of the code has been published after eight housing providers took part in a four-month long pilot of the code. There has also been consultation with customers, mortgage lenders and other stakeholders over the past 18 months.

Alongside the code, the Shared Ownership Council has also published lessons from the pilot, a shared ownership learning directory and a guide to service charges under the scheme.

Each provider who took part in the pilot undertook a gap analysis of their performance against the code at the start of the process. That revealed relatively strong compliance in some areas, such as communication with shared owners and prospective shared owners. But when it came to providing information to shared owners, just 55% of sales and marketing functions were in compliance with the code requirements at the start of the pilot, and 69% of professionals working in leasehold and post-sales.

In an exclusive interview with Inside Housing published today, Ann Santry, chair of the Shared Ownership Council, said she was “hopeful that the code will make it easier for customers to compare and contrast” different service providers. She said she was also hopeful it will drive more investment in the product. The idea is to have an accredited code that organisations would pay a fee to sign up to.

Ms Santry said that conversations with investors have suggested they are interested in adoption of the code “because they want a quality mark”.

Andrew Greenwood, deputy chief executive of Leeds Building Society, said he thought the product “offers a lifeline for those priced out of full home ownership” but that the scheme “isn’t yet delivering all that it could”.

He said: “The new Shared Ownership Code is an important step in raising standards, improving the experience for buyers, and strengthening shared ownership’s place in the housing market. We’re calling on all providers to get on board.”

Kate Henderson, chief executive of the National Housing Federation, said the product “is a vital part of meeting the country’s housing need” but that “some shared owners have faced challenges, which is why we support the Shared Ownership Code”.

She said the code worked in the best interests of shared owners, while supporting the industry to deliver an excellent product”.

The council hopes that the code will help address some of the concerns raised by the then Levelling Up, Housing and Communities (LUHC) Committee last year. Its report into the tenure called for “urgent” reforms of the products and warned that as things stand, shared ownership is not always delivering on its promise.

The providers who took part in the pilot of the code were Clarion Housing Group, Heylo, Housing 21, L&Q, LiveWest, Onward, SNG and Stonewater.

During the pilot, each provider undertook a gap analysis, developed an action plan for the pilot period, and participated in peer forums.

Claire Blenkin, head of sales (south) at SNG, said she thinks it is important “for as many providers as possible to sign up to the code to ensure fairness and consistency for customers in the sector”.

She said: “We think the impact will be that shared ownership customers will be more educated and aware of what to expect, so they can challenge unfair practices.”

Alison Gittins, head of sales at Onward, said that housing providers have a “mutual responsibility to make this model work”.

Having more providers sign-up to the code is “vital for future-proofing the delivery of shared ownership and protecting the long-term health of the secondary market,” she added.

Debra Saunders, sales and marketing director at LiveWest, said she believes that if “all housing providers commit to the same standards, it will become a recognised benchmark for lenders, solicitors, auditors, and the Housing Ombudsman – reassuring all parties that best practice is being followed”.

“Signing up to the code is not only about strengthening standards, but also about enhancing the reputation of housing providers and building greater trust with customers,” she said. “The more early adopters we see, the quicker the benefits will be felt across the sector."

Tim Willcocks, director of public sector engagement at Heylo, said it is committed to supporting the code as a way to simplify and improve the customer journey – from advertising at the outset through to management and resales.

Stephanie Ramsden, director of acquisitions, sales and partnerships at Housing 21, said the code would help customers better understand what they are being offered and charged, as well as adding an extra layer of accountability.

Paula Higgins, chief executive of the HomeOwners Alliance, and board member of the Shared Ownership Council, urged “all housing associations and other providers to embrace the code and demonstrate their commitment to greater transparency, consistency and fairness in shared ownership”.

And Gavin Smart, chief executive of the Chartered Institute of Housing, said that he thinks “adoption of the code by housing providers will help to give shared owners and potential shared owners confidence that their home will be well managed and that their ongoing relationship with their shared ownership landlords will be transparent, fair and well run”.

In terms of the next steps, the code is now available for shared owners to register to adopt on a voluntary basis. The Shared Ownership Council is in talks with a company with “expertise” in running accreditation schemes to run the code moving forwards, according to Ms Santry.