Government reviews national model of shared ownership

The government is reviewing a new national model of shared ownership, Housing Secretary Robert Jenrick has unveiled.

This includes allowing people to buy further shares in smaller increments of 1% or more and to cut the fees charged.

Jenrick said: “Many people want to own their home but can’t see a route towards achieving that goal.

“This government is determined to help people realise that ambition and boost ownership for thousands of hard-working people up and down the country.

“Owning a home is not just about the four walls around you, it’s about investing in your family, saving for the future and putting down roots in a community.

“These measures announced today will mean more people, including residents living in new housing association homes, are given the opportunity to get on to the housing ladder.”

For tenants in new housing association properties, there will be an automatic right to buy a share of their home from 10% with the ability to increase that share over time, up to full ownership.

The government will work with housing associations on a voluntary basis to determine what offer can be made to those in existing housing association properties.

In addition to this, the government is reviewing cutting the minimum initial stake from 25% to 10% for shared ownership.

Mark Hayward, chief executive of NAEA Propertymark, added: “Now thatthe measures on shared ownership have been confirmed, thousands of consumers will welcome the opportunity to increase their share of ownership more easily and to simplify the process by which they can sell their homes.

“Whilst we support introducing creative ways for consumers to get on to the housing ladder, the government must be careful of the unintended consequences that any changes to Help to Buy could have on the rest of the market.

“In many cases these are not properties that feed into the general marketplace but into a cul de sac with no assistance to upward activity.”