Welsh Government considers funding shared ownership

Previously, social housing grant in Wales has been used for affordable housing to rent, as well as some cash for Homebuy equity loan schemes, older people’s housing, extra care and community regeneration.

But it is understood the Welsh Government is considering adding shared ownership to the mix as it looks to scale up delivery to meet its target for affordable housebuilding.   

A spokesperson said: “We are currently considering what needs to be done to deliver against our key commitment of delivering 20,000 affordable homes over the next five years and look forward to working closely with our partners in the housing sector to achieve this ambitious target.”

It comes as the English government backs a major increase in shared ownership, with plans to build 135,000 homes in four years.

Some Welsh housing associations build shared ownership but not through government schemes.

In 2014/15, just 7% of new affordable housing provision in Wales was for affordable homeownership provision of any kind.

Kevin Howell, director of the Chartered Institute of Housing Cymru, said: “In some areas shared ownership may be a useful option for those who want to take the first step towards homeownership, but it should not be at the expense of genuinely affordable rented homes if evidence shows this is needed.”   

Tai Cymru, the former Welsh housing body, funded shared ownership before the launch of the devolved Welsh Government, but this was stopped after devolution.

In Northern Ireland, shared ownership is delivered through specialist housing association Co-Ownership Housing, with a government pilot, First Share, currently being operated by Clanmil, Choice Housing and Apex.

The Scottish Government funds a programme of shared ownership alongside shared equity.