Buyback Policies: Q&A with WBD legal experts

Shared ownership buyback policies: your questions answered by Womble Bond Dickinson (WBD) legal experts.

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Here are the key takeaways:

• Publishing buyback policies – requirements: There is no requirement to publish a buyback policy, as buybacks are generally at the landlord’s discretion
• Publishing buyback policies – best practice: The Shared Ownership Code encourages housing providers to publish their buyback policy.
• How to get hold of a buyback policy if it’s not published: There are various options to obtain information on buyback, by escalating the issue through formal channels.
• SO Central – Check SO Central: Buyback policies to see if your housing provider has published their policy.

Read on…

Are housing providers required to publish a buyback policy on their website? And, if so, is this enforceable?

In most cases, housing providers are not legally required to publish a buyback policy on their website. Where they do, policies do not usually create an enforceable right.

The lease

The starting point is always the lease. Shared ownership leases govern resale and will usually provide for a nomination period rather than a guaranteed buyback right. 

Guidance

Under Homes England guidance and the GLA framework, providers are required to follow the shared ownership model and ensure transparency and clarity in how resales operate. However, there is no universal requirement to publish a standalone buyback policy, as buybacks are generally at the landlord’s discretion.

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The Shared Ownership Code

The Shared Ownership Code encourages providers to publish clear information about resale processes and policies affecting shared owners. However, the Code is voluntary and does not create enforceable legal rights.

For-profit providers

The same principles apply to for-profit providers. Where they operate within Homes England or GLA funded schemes, they must follow the relevant guidance. But there is still no statutory obligation to publish a buyback policy, and enforceability depends on the lease.

If a housing provider doesn’t publish a ‘buyback’ policy on their website, and refuses to provide this information, what options do shared owners have?

In most cases, the appropriate approach is to escalate the issue through formal channels.

• Check your lease – The lease should be reviewed carefully, as it sets out the legal position on resale and any provider rights. If further clarification is needed, a formal written request should be made asking the provider to confirm whether a buy-back scheme exists and how it operates. This creates a clear record.
• Formal complaint – If the provider does not respond or refuses to provide information, a formal complaint can be made through the provider’s internal complaints process.
• Housing Ombudsman – If the matter remains unresolved, it can be escalated to the Housing Ombudsman, who can investigate issues such as failure to provide information, poor communication or maladministration. However, the Ombudsman cannot require a provider to buy back a property.
• Homes England and the GLA – Homes England or the GLA may be contacted where the provider receives funding, although they will not usually intervene in individual disputes.
• First-tier Tribunal (Property Chamber) – The First-tier Tribunal (Property Chamber) may be relevant where there is a dispute about lease terms or charges. Court proceedings are generally a last resort and would only be appropriate where there is a clear legal dispute.

Before escalating to these channels, a shared owner may consider contacting the Leasehold Advisory Service (LEASE) and Citizens Advice for guidance. However, please note that these organisations do not have enforcement powers.

Under what circumstances, if any, might a housing provider buy back an SO home from the estate after a shared owner has died?

Buybacks are usually discretionary and depend on the lease and provider policy.

The lease will usually provide for a nomination period during which the provider can attempt to find a buyer. If no buyer is found, the property can normally be sold on the open market.

A buyback may occur where the lease provides a right of first refusal, where the property cannot easily be sold (e.g. due to a lack of demand or a short term on the lease), where the beneficiary cannot or does not want to take on the leasehold obligations or where the scheme restricts the pool of eligible purchasers, such as in OPSO schemes.

We are extremely grateful for the support of Places for People and Womble Bond Dickinson in creating this content.

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.

Featured image: freepik

Additional Resources

Shared Ownership Resources – SO Central: Buyback policies

Shared Ownership Resources – Buyback Q&A with Zahrah Aullybocus