A committee of MPs is asking if shared ownership really meets its billing as an affordable route towards owning a home; one of its chief selling points.
The Levelling Up, Housing & Communities (LUHC) committee has launched a new inquiry to examine two available low-cost shared ownership schemes in England.
These are the Shared Ownership scheme, first established in 1980, and the far more recent Right to Shared Ownership Scheme.
The latter is delivered through the Affordable Homes Programme 2021-2026 and is supposed to offer an alternative pathway to home ownership.
Clive Betts, the LUHC committee‘s chair, said: “Affordability of housing and home ownership is a key policy area, especially for first-time buyers during 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 the committee’s inquiry, we want to examine some of the barriers to home ownership through the shared ownership schemes in England, and also look at issues such as the challenges faced by people in reselling these properties.
“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.”
The shared ownership model enables people to buy a share a property, usually from a housing association, and pay subsidised rent on the rest.
Sometimes known as ‘part buy, part rent’, shared ownership requires a smaller deposit and mortgage, supposedly making it a more affordable route into home ownership.
However, the LUHC committee is set to question this assumption, as well as address broader questions about the model.
The inquiry aims to examine the “challenges” associated with shared home ownership schemes, including barriers to achieving full home ownership, and whether shared ownership is genuinely an affordable route to owning a home.
Furthermore, the committee says it is also likely to explore challenges around reselling, affordability issues such as service charges and maintenance responsibilities, and questions around mortgage availability and the limited range of providers.
The inquiry has opened to written evidence, with the closing date for submissions on 14 September. Evidence sessions are likely to begin in October.
Main image: PHOTOCREO Michal Bednarek/Shutterstock
Read more: Social Housing Act becomes law
Are you a social housing professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.
