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MHCLG technical consultation on new model for shared ownership – Law Society response
The Ministry of Housing, Communities and Local Government (MHCLG) sought views on the government’s new model for shared ownership.
The new model aims to:
- reduce the minimum initial share from 25% to 10%
- introduce a new gradual staircasing offer, to allow people to buy additional shares in their home in 1% instalments with heavily reduced fees
- introduce a 10-year period during which the shared owner will receive support from their landlord to pay for essential repairs
- give shared ownership leaseholders (shared owners) more control when they come to sell their home
As recognised by the consultation paper, there are a number of concerns about the existing shared ownership model.
We welcome changes to make the current model more workable and feasible for both prospective and existing shared ownership homeowners.
However, we’re concerned to ensure that these owners are provided with the information they need from the government, housing associations and lenders to make informed decisions at every point of purchase, but particularly the initial purchase.
In its current form, we’re not sure that the new model would achieve these goals.
This consultation closed on 17 December 2020.
The government will analyse the feedback to the consultation.