In a bid to assess the effectiveness of shared home ownership schemes in England, the Levelling Up, Housing and Communities (LUHC) Committee has launched an inquiry.
The LUHC Committee will investigate challenges related to such schemes, particularly those preventing occupants from fully owning their homes, and gauge whether these initiatives genuinely offer an affordable route to homeownership.
Shared ownership models, sometimes referred to as ‘part buy, part rent’, enable individuals to purchase a portion of a property, typically from a Housing Association, and pay subsidised rent for the remainder. These schemes typically require smaller deposits and mortgages, rendering them more accessible paths towards homeownership.
The Committee’s review will likely cover difficulties related to reselling properties, service charges, maintenance responsibilities, affordability issues, as well as concerns about mortgage availability and the narrow selection of providers.
Chair of the LUHC Committee, Clive Betts, highlighted the importance of housing affordability and homeownership, particularly for first-time buyers amidst 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 our inquiry, 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,” Betts said.
The Committee’s inquiry will scrutinise the Shared Ownership scheme, established in 1980, and the Right to Shared Ownership, delivered through the Affordable Homes Programme 2021-2026. The Shared Ownership scheme is currently the most enduring low-cost homeownership scheme in the UK.
While the policies vary across Scotland, Wales, and Northern Ireland, the Committee’s focus will solely be on the scheme as implemented in England.
The Committee expects to begin evidence sessions for this inquiry in October. Submissions for written evidence are due by Thursday, 14th September.
