Pilot of new Shared Ownership Code begins
A new Shared Ownership Code aimed at driving better experiences for shared owners and best practice across the industry is set for launch following the largest consultation of shared owners.
Only 1 in 3 happy with shared ownership experience
The Shared Ownership Code follows an extensive consultation process that included the largest survey of shared owners with more than 1,700 current and prospective shared owners, as well as holding focus groups across the regions.
The HomeOwners Alliance (HOA) is grateful to those shared owners who contributed to the consultation which has shaped the Code. Although the code is voluntary and will be piloted, it is the first step to make shared ownership fairer to all by setting the minimum standard and building on best practice.
The consumer survey revealed that just one in three people are happy with their experiences in shared ownership to date – albeit with people in houses (45%) saying they are more satisfied than those in flats (28%). Shared owners were more dissatisfied in London (61%) compared to outside London (51%).
Comments included:
“As a renter I didn’t have protection. As a shared owner I feel safe. It’s affordable, it’s permanent. Staircasing doesn’t make any difference to my happiness. I have my own keys.”
“I can no longer afford my property. The provider wouldn’t buy me out and quoted me £4k to sell. I’m stuck and I cannot staircase. I wasn’t told about these fees before”.
HOA’s Chief Executive, Paula Higgins, welcomed the pilot, saying:
“For this Code to have credibility and to make a real difference to make shared ownership better and fairer for all, there needs to be buy in from shared owners.
“That’s why we are pleased that more than 1,700 people contributed to the consultation.
“Although voluntary to start, we will be encouraging all housing associations to sign up to the Code and to ensure that existing as well as new shared owners are covered by the Code. “
Shared Ownership Code to be piloted
This has resulted in changes to the initial draft of the Code, which will now be tested during a pilot phase with eight housing providers, including Clarion, Heylo, L&Q, LiveWest and SNG from December 2024 to March 2025.
The Code is stewarded by the Shared Ownership Council, a voluntary cross-industry body, of which HOA’s Chief Executive Paula Higgins is a member, set up to drive improvements to the shared owner experience and unlock a better shared ownership market.
Twenty-seven housing providers and financial institutions have so far backed the council, including Lloyds Bank, Leeds Building Society and Newbury Building Society, along with housing associations and shared ownership specialists including L&Q, LiveWest, Platform, L&G Affordable Homes, Heylo and Clarion.
What is shared ownership?
Shared ownership – where people buy a share of the property and pay rent to a landlord on the rest – was launched by UK government back in 1980 as a way for people to take their first step on the housing ladder. There are now more than 200,000 households living in a shared ownership home in England.
While shared ownership works well for some, there have been a number of cases where people have felt misinformed about the product, or where fees and charges have left them in difficulty. HOA has been campaigning for better shared ownership for a while now.
What does the shared ownership code cover?
The Code has been designed to highlight existing regulations and legal requirements, while asking more of lenders and providers – especially around transparency and service quality. The latest consultation considered feedback on customer issues such as the sales process, clarity of information, service charges and lease extensions.
Meanwhile the industry fed back on refundable fees and discounted service charges. The resulting Code includes requirements around defects, fees, service charges, lease extensions and staff training.
The Council will work closely in partnership with the pilot participants to fine-tune implementation. This in turn will help pave the way for the Council’s broader industry launch of the Code in Spring 2025.
Ann Santry, CBE Chair of Shared Ownership Council, said:
“Shared ownership has an important role to play in helping people start their home ownership journey.
“But we also understand that there are challenges with the product which must be addressed.
“While the Code marks a significant step toward ensuring all those who enter shared ownership have the experience they expect, it cannot address all the challenges that shared owners face.
“Broader reforms, including legislative support, remain essential to achieving lasting improvements in shared ownership.”
Kate Henderson, Chief Executive of the National Housing Federation, said:
“I also recognise the problems some shared owners have had to face – and the need for our sector, and the wider market, to respond.
“That’s why the NHF are fully behind this important cross-industry effort to launch a Shared Ownership Code that works in the best interests of shared owners.”
Gavin Smart, Chief Executive of the Chartered Institute of Housing, said:
“Shared ownership is a valuable tenure that provides an important option to households unlikely to qualify for social rented housing, but who are locked out of traditional home ownership by high house prices and affordability.
“The Shared Ownership Code is a very welcome development and will help to give shared owners and potential shared owners confidence that their shared ownership purchase will be well managed and that their ongoing relationship with their shared ownership landlords will be transparent, fair and well run.”
Kindly shared by The HomeOwners Alliance (HOA)
