The cross-party Levelling Up, Housing and Communities (LUHC) Committee has published a damning report on shared ownership schemes, declaring them a failure in offering an affordable route to homeownership.
The report criticises the schemes for subjecting buyers to increasing rents, uncapped service charges, and a disproportionate share of repair and maintenance costs, making the dream of full homeownership unattainable for many.
Clive Betts, Chair of the LUHC Committee, stated, “Shared ownership was hailed as an answer to the housing crisis, especially for first-time buyers. However, we have found that for too many people, shared ownership becomes an unbearable reality, where a blizzard of charges and an unfair burden for maintenance and repair costs means that they are unable to afford full homeownership.”
The committee’s report calls for significant Government action to reform shared ownership schemes to ensure they can provide a genuinely affordable homeownership path. It highlights the complexity of shared ownership leases and the lack of a single, specialized source of independent and impartial advice for shared owners.
Despite acknowledging the improvements made to shared ownership leases in 2021 to address issues around costs and service charges, the report points out that these provisions do not apply to properties delivered under the previous Affordable Homes Programme (2016-2023). This discrepancy risks creating a two-tier market, making older shared ownership properties harder to sell.
The report recommends that the Government extend the 2021 lease improvements to properties from the earlier programme and ensure shared owners are only liable for repair and maintenance costs proportional to their ownership share. It also suggests the Regulator for Social Housing should update its Tenant Satisfaction Measures to include shared owners’ satisfaction with repairs and maintenance.
