Shared Ownership

(asked on 27th January 2021) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department are taking to ensure that residents in a Shared Ownership Scheme are not disadvantaged by the terms of their lease, particularly in regard to service charge increases.


Answered by
Christopher Pincher Portrait
Christopher Pincher
Minister of State (Department for Levelling Up, Housing and Communities)
This question was answered on 4th February 2021

On 8 September the Government confirmed the new model for Shared Ownership. The new model has reduced the minimum share to 10 per cent, introduced 1 per cent staircasing and introduced a 10-year period during which the landlord will support with the cost of repairs on new build homes. These reforms will help to make the scheme more consumer friendly, more accessible and fairer, leading to a better experience for a future generation of shared owners.

In line with making Shared Ownership more consumer friendly, the Government believes very strongly that service charges should be transparent and communicated effectively, and that there should be a clear route to challenge or redress if things go wrong. The law is clear that service charges are payable only to the extent that costs have been reasonably incurred. In support of this, leaseholders, including shared owners, have the ability to apply to the Property Chamber of the First-tier Tribunal for a determination where they do not believe the charges are reasonable.

The Government established an independent working group chaired by Lord Best to raise standards across the property sector, which also considered how fees such as service charges should be presented to consumers.  The working group published its final report to Government (see: https://www.gov.uk/government/publications/regulation-of-property-agents-working-group-report) and we are considering the report’s recommendations before announcing next steps.

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Recent Documents related to Shared Ownership

1. Private shared homeownership: call for proposals
29/10/2018 - Department for Levelling Up, Housing & Communities
- View source

Found: Ministry of Housing, Communities and Local Government Innovation in Affordable Home Ownership A call

2. New national model for shared ownership
28/08/2019 - Department for Levelling Up, Housing & Communities
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Found: Ministry of Housing, Communities and Local Government Making home ownership affordable

3. MHCLG - written evidence
31/10/2018 - Inquiry: Leasehold reform - Housing, Communities and Local Government Committee
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Found: submitted by the Ministry of Housing, Communities and Local Government [LHR 548] 1. The Government’s

4. Mrs Della Bramley - written evidence
19/11/2018 - Inquiry: Leasehold reform - Housing, Communities and Local Government Committee
- View source

Found: (part of Berkeley Group), the Managing Agents or a Housing Association  1)      Background I have lived on

5. Stonewater - written evidence
31/10/2018 - Inquiry: Leasehold reform - Housing, Communities and Local Government Committee
- View source

Found:   Introduction Stonewater is amongst the leading developing housing associations in the country, managing around 31

Latest Documents
Recent Speeches related to Shared Ownership

1. Oral Answers to Questions
10/12/2018 - Commons Chamber

1: The Government have recently published their response to the Housing, Communities and Local Government - Speech Link
2: many challenges on housing delivery rely on the availability of land, will the Government consider introducing - Speech Link
3: through local plans, which allow local councils to provide housing in suitable locations. Local plans will - Speech Link

2. Leasehold Reform (Ground Rent) Bill [HL]
09/06/2021 - Grand Committee

1: this is a very complicated subject, that the Government are working on solutions and that we will see - Speech Link
2: set out in mine to the discretion of the Secretary of State, in regulations, and is time-limited. The - Speech Link

3. Adriatic Land 5 Ltd (Stevenage)
27/02/2019 - Westminster Hall

1: such as Adriatic Land 5 Ltd hold freeholds and charge ground rents. Often, the rents double every 10 - Speech Link

4. Leasehold Reform (Ground Rent) Bill [HL]
24/05/2021 - Lords Chamber

1: Bill will lead to fairer, more transparent home ownership for thousands of future leaseholders. It represents - Speech Link

5. Leasehold and Commonhold Reform
21/12/2017 - Westminster Hall

1: run the good cause campaign, Better Retirement Housing, which was once known as Carlex—the Campaign Against - Speech Link
2: trying to solve all the problems with all forms of housing in one short debate. I will try to limit my remarks - Speech Link
3: securing the debate. While the legislation the Government have announced to ban the practice in the future - Speech Link

Latest Speeches
Recent Questions related to Shared Ownership
1. Shared Ownership: Service Charges
asked by: Mike Amesbury
08/12/2020
... what assessment he has made of the transparency of service charges in shared ownership properties.

2. Shared Ownership: Housing Associations
asked by: Gary Streeter
13/01/2020
... what plans the Government has to introduce a right to shared ownership for housing association tenants; and what assessment he has made of the potential effect of such proposals on the provision of affordable housing in perpetuity.

3. Local Housing Allowance: Shared Housing
asked by: Caroline Lucas
16/06/2021
... if he will bring forward the planned exemption for survivors of domestic abuse and human trafficking; for what reasons that category of persons were not included in the recent decision to bring forward the exemption for rough sleepers aged 16-24 and care leavers up to age 25 to June 2021; and if he will make a statement.

4. Local Housing Allowance: Shared Housing
asked by: Caroline Lucas
08/06/2020
... if she will make it her policy to suspend the Shared Accommodation Rate for under 35 year olds.

5. Shared Housing: Local Housing Allowance
asked by: Caroline Lucas
17/03/2020
... (b) care leavers up to the age of 25 and (c) survivors of domestic abuse and human trafficking will not be introduced until October 2023; if she will make the provision of discretionary housing payments automatic for each of those groups until that introduction date; and if she will make a statement.

Latest Questions