Resale valuations: Q&A with Homes England

What do shared owners need to know about valuations for shared ownership resale?

In this 4-part Q&A, Homes England explain shared ownership valuations, from purchasing your first share to resale

• Part One: Buying shared ownership
• Part Two: Staircasing
• Part Three: Lease extension
• Part Four: Resale

In Part 4, we take a closer look at shared ownership valuations for resale, including lender “down valuations”.

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Here are the key takeaways:

• Revaluations: Homes England recently updated their guidance to avoid a costly need for revaluations every three months. However, this is discretionary and requires landlord agreement.
• Can shared owners set the price for a sale? Shared owners can set their own price once the nomination period is over. Or if the landlord waives the nomination period.
• RICS valuation: Shared owners often have to pay for a RICS valuation if they want to sell their share. Though only during the nomination period, or if any staircasing is taking place as part of the sale.
• Variants When it comes to resale, there are different rules for “standard” shared ownership, retirement homes and some rural homes.

Read on….

Q1. The shared ownership landlord has the right to choose a buyer during the “nomination period” (usually 4 or 8 weeks). During this time, the shared owner has to sell at the market value established by a RICS valuer. Who pays for the RICS valuation – the shared owner or the landlord?

The purpose of the nomination period is to give the landlord an opportunity to nominate a buyer who meets shared ownership eligibility criteria. This allows the home to be retained as affordable housing. In addition, the landlord has the option of purchasing the home back to sell on to an eligible applicant.  This is sometimes referred to as the “right of pre-emption“, the landlord’s “right of first refusal to buy’“or similar. 

Payment arrangements for resales do not form part of Homes England’s model leases, unlike staircasing transactions. It is common practice for the shared owner to pay for any RICS valuation. This is because they are the party initiating the resale. However, if the parties involved wish to come to some alternative arrangement that perhaps eases the cost to the shared owner then they can.

Party: The people or businesses who have signed a contract. For example, a shared owner and their shared ownership landlord.

Q2. Can a shared owner appoint a RICS valuer of their choice, who isn’t on their landlord’s panel of recommended valuers?

A shared ownership landlord establishing a panel of RICS valuers may be helpful for shared owners. Say, if they are unfamiliar, or unsure, with how to find one through their own means.

The advantage to a shared owner of a landlord operating a panel of RICS valuers (or a preferred valuer) is that their knowledge and expertise has been established and is subject to a process of review. In particular, this will include ensuring that they understand fully the basis on which shared ownership valuations should be undertaken. Also, that they are fully familiar with Homes England’s shared ownership valuations guidance.

All RICS registered valuers should operate according to the guidance, requirements, and ethics established by RICS. Consequently, they should operate on a fully impartial and independent basis. Homes England’s guidance clearly states that any RICS valuer, for any form of shared ownership transaction, should be from an organisation which is fully independent from the shared ownership landlord.

Q3. What options does a shared owner have if they don’t agree with a valuation from a RICS valuer on the landlord’s panel?

For shared ownership resales Homes England’s view is that, whoever commissioned the RICS valuation, the other party should be able to question the valuation presented. For example, if one party has further evidence of recent sales of similar properties in the locality, over and above those considered by the RICS valuer. (If this information is made available).

Homes England’s model shared ownership leases contain provisions relating to “Expert determination” .

Provision: A provision is a specific term, clause or condition in a lease.

These provisions cover issues relating to independent experts, such as a RICS surveyor, carrying out a valuation. The provisions include allowing the parties the opportunity to make representations to an independent expert. They also allow each party to make “submissions on the representations of the other“.

In all cases, the respective parties should seek their own legal advice on how any of the lease provisions can, or should, be interpreted.

Q4. When selling their share, does a shared owner have to pay for a revaluation every three months?

Following feedback from shared owners and landlords, Homes England has recently updated its guidance (May 2026) to allow more flexibility.

Homes England does not require RICS valuations to be updated for resales. Note that a RICS valuation is only required where a resale is taking place through the nomination period, or where staircasing is involved. If a resale arranged through the nomination period falls through then it is likely that the nomination period will have expired. In that case, the seller will then be free to sell at a price of their choosing.

If any form of staircasing is taking place – either through a “back-to-back staircasing” transaction or where the buyer wishes to buy a higher share than is being sold – then a RICS valuation will be required to determine the price of the staircasing element. To clarify, this is the case even when the sale is outside of the nomination period with the RICS valuations guidance for staircasing applying.  

Q5. Can a shared owner accept a lower offer during the nomination period? Or a higher offer?

During the nomination period the sales price is established by a RICS valuation. This requirement is established within the shared ownership model leases under the “Assignment and underletting” provisions.  

Q6. Can a shared owner set their own sales price once the nomination period has expired?

Yes, they can. During the nomination period, the shared ownership landlord controls the sales price. However, If the landlord does not identify a buyer within the nomination period, and the landlord declines to purchase the property themselves, then the requirement to establish the sales price through a RICS valuation falls away.

This also applies if the nominated buyer does not exchange or complete within the timescales set out in the lease.

Note that this applies only to the sale price of the share that is being sold. If there is any staircasing involved in a resale – either a “back-to-back staircasing” transaction (see below) or because the buyer wants to buy a higher share – then the price of the staircasing element of the transaction has to be established by a RICS valuation.

For a resale, the buyer is not obliged to buy a higher share than the seller owns. Where a buyer wishes to do this and either a new RICS valuation, or a re-valuation, is required to establish the price of this additional share then any valuation cost should be paid by the buyer rather than the seller. 

Q7. If a shared owner sells 100% via a simultaneous sale and staircasing transaction, how much does the landlord get for their share if the shared owner accepts an offer above the most recent RICS valuation?

The payment for the staircasing element of the transaction (to 100%) will be based on the RICS valuation. This is in line with the staircasing provisions of the shared ownership model leases.  

Therefore, the price that a shared owner gets for their own share (above or below the RICS valuation) has no impact on what the shared ownership landlord will receive for the staircasing element.

Q8. How much does the landlord get for their share if a shared owner accepts an offer below the most recent RICS valuation?

The payment to the landlord for the staircasing element of the transaction (to 100%) is based on the RICS valuation, in the same way as it is if sold above the RICS valuation. This is in line with the staircasing provisions of the shared ownership model leases.  

Q9. What happens where a shared owner is affected by building safety issues and this is making it hard to sell?

There are some specific pieces of guidance within Homes England’s Capital Funding Guide for such properties. This guidance includes the following:

• Reference to RICS guidance to valuers on the valuation of certain properties with cladding
• An agreed statement from mortgage lenders in relation to such homes
• In light of the mortgage difficulties faced (despite the above) that shared owners should consider trying to find a cash purchaser 
• Where a buyer cannot be found, shared ownership landlords can consider;
  • agreeing any sub-letting request from the shared owner
  • repurchasing the shared owner’s equity (which remains at the landlord’s discretion)
  • where a RICS valuation is required (for example, for a “back-to-back staircasing transaction”) working with the shared owner to obtain a RICS valuation that accurately reflects the value that a buyer is willing or able to pay.

Q10. Are there any differences between “standard” shared ownership and Older Persons Shared Ownership (OPSO), or homes in Designated Protection Areas (DPAs), when it comes to valuations for resale and/or if a property has not sold despite being on the market for a long time?

Staircasing

OPSO homes and shared ownership homes in DPAs with a restricted staircasing (80%) lease cannot be sold outright via a back-to-back staircasing transaction due to the staircasing restriction on each.  

Many of the lease provisions are the same as those for “standard” shared ownership homes, such as those relating to the nomination period and for staircasing. But there are some significant differences.

Shared ownership homes in DPAs with a mandatory buyback lease allow the shared owner to staircase to 100% but, at resale where a share of 80% or more is owned the landlord is obliged to purchase back the home.

Leasehold

Another important difference for these variant shared ownership products and leases is that the homes will always remain as leasehold; a shared owner will not be able to obtain the freehold.  Where a RICS valuation is required for either resale or staircasing on these homes then it is important that the RICS valuer commissioned is made fully aware of the restrictions on these properties for them to take into account in any valuation as they see appropriate. 

Difficulties selling

Where there are difficulties in selling these homes then the same options as for standard shared ownership apply. For example, the shared owner can request to sub-let the home, and the landlord has the option of re-purchasing the shared owner’s equity. Outside of the nomination period then the shared owner has the option of reducing the price if demand is low.

For homes in DPAs that were delivered as part of a Homes England affordable homes programme there is the option to request that the restrictions are removed if all parties, including the local authority, are in agreement. It will be for the parties involved to agree any payment arrangements where costs are incurred. The vehicle for any removal of DPA restrictions is through Homes England’s DPA waiver process.  

For shared ownership homes in DPAs that do not form part of a Homes England affordable homes programme then any restriction can also be removed with the agreement of the relevant parties, particularly the local authority. Such changes do not require the involvement of Homes England.

We are extremely grateful for the support of Homes England in creating this content.

DISCLAIMER:

This Q&A is accurate, to the best of our knowledge, as at October 2026. However guidance is updated on a regular basis, so please check Homes England’s current Capital Funding Guide, and/or seek expert legal advice if required.

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: SolStock

Other Resources

Leasehold Advisory Service: How to sell your shared ownership property

Leasehold Advisory Service: Selling your shared ownership property

Shared Ownership Resources – Shared Ownership Stamp Duty: Selling