The Levelling Up, Housing and Communities (LUHC) Committee has
today launched an inquiryinto the two
available low-cost shared home ownership schemes in England (news
item here).
The shared ownership model enables people to buy a share a
property, usually from a Housing Association, and pay subsidised
rent on the rest. Sometimes known as ‘part buy, part rent’,
shared ownership requires a smaller deposit and mortgage, making
it a more affordable route into home ownership.
The LUHC’s Committee’s inquiry will examine the challenges
associated with shared home ownership schemes, including barriers
to achieving full home ownership and whether shared ownership is
genuinely an affordable route to owning a home.
The Committee is also likely to explore challenges around
reselling, affordability issues such as service charges and
maintenance responsibilities, and questions around mortgage
availability and the limited range of providers.
Full terms of reference are included further below.
, Chair of the Levelling Up,
Housing and Communities Committee, said: “Affordability
of housing and home ownership is a key policy area, especially
for first-time buyers during a cost-of-living crisis. Shared
ownership has, in the past, been hailed as an answer to the
housing crisis for younger people, offering the cheapest way to
get on the housing ladder.
“In the Committee’s inquiry, we want to examine some of the
barriers to home ownership through the Shared Ownership schemes
in England and also look at issues such as the challenges faced
by people in reselling these properties. We want to explore
whether shared ownership is providing the right answer for those
people locked out of traditional home ownership and who are hit
by rocketing private rents.”
The Committee will be examining the Shared Ownership scheme,
first established in 1980, and also the Right to Shared Ownership,
which provides an alternative pathway to homeownership in England
and is delivered through the Affordable Homes Programme
2021-2026.
The Shared Ownership scheme is now the longest lasting low-cost
homeownership scheme in the UK. Shared Ownership policies vary
between Scotland, Wales, and Northern Ireland. The LUHC
Committee’s inquiry will be focussing on the Shared Ownership
scheme in England.
Evidence sessions for this inquiry are likely to begin in
October.
Shared ownership – inquiry terms of reference
The Committee welcomes written evidence on the
terms of reference outlined below.
The closing date for submissions is Thursday 14
September.
- Do the schemes Shared Ownership and
Right to Shared Ownership provide good value for money for the
potential users of the scheme?
- How can the Government ensure that
Shared Ownership and the Right to Shared Ownership remains an
affordable programme in light of rising provider costs and
inflation?
- What support can be offered to
Shared Ownership tenants given the impact of leasehold
properties?
- What impact, if any, are changing
sector regulations having on the Shared Ownership and Right to
Shared Ownership Scheme?
- Is there a lack of mortgage
providers for Shared Ownership properties?
- What challenges are associated with
repair costs being covered by those utilising the Shared
Ownership schemes?
- How viable is full ownership
through the Shared Ownership scheme and/or the Right to Shared
Ownership Scheme?
- Does the Right to Shared Ownership
policy in its current form reduce homeownership risks for
individuals from lower income backgrounds?
- What more can be done to secure the
Shared Ownership scheme as an affordable route into home
ownership?
- How does the variation of costs
from Housing Associations and other providers impact the Shared
Ownership Scheme and the experience of tenants or potential
buyers?
- What should be done to improve the
Department for Levelling Up, Housing and Communities’ data
collection regarding Shared Ownership and the Right to Shared
Ownership?
- Are alternative schemes such as
‘Rent to Buy’ viable and do they offer more value for money?
- What more should be done to support
first time buyers and those from lower hold incomes onto the
property ladder?
