Parliamentary committee launches inquiry into shared ownership schemes
The House of Commons levelling up, housing and communities (LUHC) committee has launched an inquiry into the two available low-cost shared home ownership schemes in England.
The shared ownership model enables people to buy a share of 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, making it a more affordable route into home ownership.
The LUHC committee’s inquiry will 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.
The committee 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.
LUHC committee chair Clive Betts 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 committee will be examining the Shared Ownership scheme, first established in 1980, and also the Right to Shared Ownership, which provides an alternative pathway to homeownership in England and is delivered through the Affordable Homes Programme 2021-2026.
The Shared Ownership scheme is now the longest lasting low-cost homeownership scheme in the UK. Shared ownership policies vary between Scotland, Wales, and Northern Ireland. The LUHC committee’s inquiry will be focusing on the Shared Ownership scheme in England.
Evidence sessions for this inquiry are likely to begin in October, following the closing date for submissions on 14th September.