In an announcement today, the Secretary of State for Housing, Communities and Local Government, Robert Jenrick MP announced plans to change how shared ownership home owners will be able to increase their share in the ownership of their home. People use shared ownership to buy a proportion of their home – which can be a little as 25% – and then pay a subsidised rent on the rest. The new package of measures is intended to help people on lower incomes get onto the housing ladder.
The Government will review a new national model for shared ownership to make it easier for people to buy more of their own home, including allowing them to buy in 1% increments. At present, increasing the owners stake until the property is bought outright, known as “staircasing”, only allows home owners to buy increased shares in 10% increments.
The Secretary of State said:
“Building the houses this country needs is a central priority of this government. We know that most people still want to own their own home, but for many the dream seems a remote one.
“My mission is to increase the number of homes that are being delivered and to get more young people and families onto the housing ladder, particularly those on lower incomes.
“That’s why I am announcing radical changes to shared ownership so we can make it simpler and easier for tens of thousands trying to buy their own home.
“Help to Buy, the cut to Stamp Duty and our home-building programmes are already making a real difference, but I am clear we need to go much further if we are to make the housing market work.
“I will be looking at ensuring young people from Cornwall to Cumbria aren’t priced out of their home areas and how we can build public support for more house building and better planning.
“This government will help a new generation to own their home.”
To inform this new measure, the Ministry for Housing, Communities and Local Government, published a discussion paper seeking views on a new national model for shared ownership.
The Government seeks views on:
- allowing owners to purchase shares in much smaller increments;
- making it easier to sell your home, by giving the owner more control over the sales process; and
- making it easier to get a mortgage, by ensuring there is one preferred national model for shared ownership
The consultation closes at 11:45pm on 29 September 2019
You can respond in one of two ways:
- Respond online
- Email to: [email protected]