CIH calls on Government to review Shared Ownership
Megan Hinch said: “Government, providers and lenders need to work together to build a tenure that is transparent and sustainable across its whole lifecycle.”
The Chartered Institute of Housing (CIH) called on the Government to review Shared Ownership in England to ensure it remains financially sustainable over the long term.
Its report, ‘Shared ownership in England: Assessing the tenure’s evolving role’, looks at changes to affordability, staircasing and access since the scheme began in 1980.
It found that affordability checks carried out when a home was bought did not always reflect the owner’s longer-term financial position.
A significant proportion of shared owners showed signs of financial instability, while satisfaction often fell the longer people stayed in their homes.
People living in flats reported pressures similar to those faced by other leaseholders.
Recent reforms included 1% staircasing, a 10-year repair warranty and standard lease terms of 990 years.
The Social and Affordable Homes Programme (SAHP) also placed more focus on service charge affordability and transparency.
However, the changes only applied to new Shared Ownership homes.
CIH estimated that around 200,000 existing shared owners are not covered, creating a risk that protections depended on when a home was bought.
The report called for delivery to respond better to regional needs, affordability checks to consider long-term costs and stronger coordination between regulators.
It also recommended clearer information about staircasing and resale, better data and long-term tracking, and a full evidence-based review of the tenure.
Megan Hinch, co-author of the report and policy manager at CIH, said: “Shared ownership has helped thousands of people take a first step onto the housing ladder who would otherwise have been shut out of it, and it’s important that we don’t lose sight of that.
“But our research shows that affordability can’t just be considered once, at the point someone buys their home.
“Government, providers and lenders need to work together to build a tenure that is transparent and sustainable across its whole lifecycle.”
Hinch added: “That means better data, clearer information for shared owners, and a proper, evidence-based review of how the model is working in practice.
“Recent reforms have taken the first step in improving shared owners’ experiences, but these can go further to ensure shared ownership is an accessible route towards sustainable homeownership.
“This includes encouraging providers to sign up to the Shared Ownership Code, which promotes transparency, fairness and consistency for shared owners across the sectors.”
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