Could shared ownership be heading for a formal review? This month, MPs debated the Social Housing Bill [HL], including a provision requiring the government to review the operation and effectiveness of shared ownership in England.
We’ve launched our new ‘Shared Ownership Insights: Buyback’ report, which includes a new Older Persons Shared Ownership (OPSO) case study. We also held the first part of our Trustees Away Day.
Read on for a roundup of the latest shared ownership news and our activities in September.
Could the government review shared ownership?
Shared ownership was back on the parliamentary agenda this month. MPs debated the Social Housing Bill [HL] at its second reading in the House of Commons on 10 September.
The Bill currently includes Clause 13, which originated as an amendment tabled by Lord Young of Cookham in the House of Lords. If it remains in the legislation through its remaining parliamentary stages, it would require the Secretary of State to conduct and publish a review of the operation and effectiveness of shared ownership in England within 12 months of Royal Assent.
Clause 13 says a review should consider:
- the affordability of shared ownership
- whether the scheme provides a viable route to full home ownership
- staircasing costs, fees and valuations
- barriers to staircasing
- the impact of service charges, repairs and other housing costs, and
- whether legislative or regulatory change is needed.
A number of MPs raised concerns about shared ownership during the Commons debate.
Danny Beales MP, who represents Uxbridge and South Ruislip, referred to constituents who had contacted him about their experiences. He said:
“They have a percentage of ownership, but all the responsibility when things go wrong.”
He encouraged the Government to make any review “comprehensive and thorough”.
What are other MPs saying about shared ownership?
Other MPs raised issues including rising service charges, affordability, the management of shared ownership homes and people feeling trapped in properties they struggle to sell. Housing Minister Matthew Pennycook acknowledged the pressures facing shared owners. But he told MPs that the government does not believe a separate review is necessary, because it is already considering issues including data and long-term affordability. Clause 13 nevertheless remains in the Bill at the time of writing.
We’ll continue to follow developments. You can also follow Shared Ownership Resources on Facebook and LinkedIn, where we’re sharing clips of MPs discussing shared ownership.
What next?
The Bill has further stages to complete. Consequently, there is no guarantee that the shared ownership review will appear in the eventual legislation.
Have your say on the Social Housing Bill
A House of Commons Public Bill Committee has now been established to scrutinise the Social Housing Bill line by line.
The committee is inviting written evidence from people with relevant expertise, experience or a special interest in the Bill. It is due to meet for the first time on 27 October and is expected to report by 5pm on 3 November. However, Parliament advises people to submit evidence as soon as possible because the committee could finish its work earlier.
It’s an important opportunity to show your support for a review of shared ownership in the Bill. Also to share first-hand experiences and views about what any review of shared ownership should examine.
The current clause specifically refers to affordability, staircasing, service charges, repairs and other housing costs. Other issues that could be relevant to the wider operation and effectiveness of shared ownership include:
- barriers to resale
- routes out when a property cannot be sold
- buyback, and
- the experiences of people buying or inheriting Older Persons Shared Ownership (OPSO) Extra Care homes.
These are themes explored in our own research. Our new Shared Ownership Insights: Buyback report, for example, examines barriers to selling shared ownership properties. In the report we call for a clear, fair and mandatory framework around buyback. We also make specific recommendations concerning OPSO and people who inherit shared ownership homes.
Shared Ownership Insights: our buyback report is out now
September also saw the launch of our first Shared Ownership Insights report.
We launched ‘Shared Ownership Insights: Buyback‘ at the CIH | NHF Housing Community Summit in Liverpool on 8–9 September.
Shared Ownership Resources founder, Sue Phillips, discussed the report during the panel session, Shared Ownership: Building trust and delivering value for customers. She was speaking alongside Ann Santry CBE (New Homes Quality Board) and Stuart Hensby (Sales and Marketing Director at Abri).
We were delighted by the positive response to the report and the conversations it generated. And we were pleased to be invited to discuss our report at a meeting with Homes England.
Buyback is where a housing provider purchases a shared owner’s interest in their home. It can sometimes provide an exit route where a shared ownership property cannot be sold, but access to buyback remains extremely limited.
Our report takes a longer-term look at shared ownership: why people need to sell, the barriers they can encounter when trying to do so and why buyback may sometimes be the best — or only — option.
It calls for a clear, fair and mandatory framework for the buyback process, with the aims of improving access to and exit from shared ownership homes, reducing the loss of social housing to the open market and helping restore public confidence in shared ownership.
Want to understand buyback in more detail? You can also read our Buyback: Q&A with Zahrah Aullybocus, Buyback Policies: Q&A with WBD legal experts and SO Hub: Buyback policies.
Can you get a fair price for an OPSO Extra Care home?
Our latest ‘My SO Home’ shared ownership case study looks at what can happen when a family inherits an Older Persons Shared Ownership (OPSO) Extra Care flat and struggles to sell it.
The contributors to ‘My SO Home: No. 42’ say they spent three years and 11 months trying to sell the property after the death of their mother-in-law.
During that period, they remained responsible for:
- rent on the housing provider’s share
- the full service charge, and
- other costs associated with an empty property.
They calculate their total losses, including the eventual capital loss on buyback, at more than £63,000.
Eventually, the housing provider agreed to buy back the flat. But, according to the case study, the offer was equivalent to 80% of the price originally paid for the property in 2017.
Their experience raises difficult questions about selling an OPSO property, how long families can reasonably be expected to carry the costs of an empty retirement home and how buyback valuations should work when a housing provider eventually agrees to repurchase a property.
Looking for support with shared ownership buyback?
Are you actively trying to secure a buyback from your housing provider?
Our WhatsApp Buyback Group provides peer support for people currently going through the process.
We also welcome people who have already completed a buyback and are willing to share information, practical tips and their experience with other shared owners.
Please get in touch with us if you’d like to join: info@sharedownershipresources.org.
The experiences shared with us also help build a clearer picture of how buyback policies work in practice — and where shared owners encounter difficulties.
Trustees Away Day: developing our future plans
This month, our trustees came together for the first of two Trustees Away Days.
Alongside our new Chair, John Mayford, and facilitator Lara Oyedele, CEO of Black on Board, trustees were joined by guest Edward Ihejirika, who provided an external perspective on our discussions.
Part 1 focused on developing the vision and direction of Shared Ownership Resources: building an organisation that is inclusive, representative, focused and rooted in ethical values.
It was a valuable opportunity to consider where we are now, who we represent and how we can build on our work as “a national voice for shared owners”.
We’ll be getting together again in October for our Trustees Away Day – Part 2, when we’ll continue developing our plans for the organisation’s next stage.
Shared ownership: what do buyers need to know?
Shared Ownership Resources founder, Sue Phillips, has also been speaking to consumer rights and personal finance platform Doit about her own experience of shared ownership.
Watch the trailer via our new Instragram account, and follow us for more posts and videos.
In the full video, Sue discusses some of the longer-term costs and risks that prospective buyers need to understand. She also shares findings from our recent survey asking shared owners what should be included in a new Shared Ownership Guide — created by shared owners for shared owners.
The guide is intended to help people ask better questions and make more informed decisions before buying a shared ownership home.
If you find the discussion useful, please give the video a like and leave a comment. It helps more people discover the conversation — and we’d particularly like to hear what you think people should know before buying shared ownership.
Stay up to date on shared ownership
In short, September has put both shared ownership reform and routes out of the scheme firmly in the spotlight.
The Social Housing Bill could lead to a formal review of shared ownership. Parliament’s call for written evidence gives people an opportunity to explain why they support a review.
At the same time, our new Shared Ownership Insights: Buyback report and latest OPSO case study highlight a related question: what happens when a shared owner needs to leave, but can’t find a workable route to sell?
We’ll continue to follow the Social Housing Bill, develop our work on buyback, gather evidence from shared owners and housing professionals, and develop our organisation through the second part of our Trustees Away Day in October.
To keep up to date, simply join our mailing list for updates, journo requests and/or fundraising appeals.
DISCLAIMER: The information provided on this website is for general purposes only. It is not intended to be a substitute for legal, financial, tax or other professional advice. Everyone’s situation is different so always seek expert advice on any questions you may have.
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