Government to introduce new shared ownership model

The government has launched a consultation on changes to the shared ownership tenure that would require landlords to pay more towards repairs from next year. The new model introduces a 10-year period in which landlords would need to provide support to pay for essential work, which leaders fear will impact the viability of the tenure and squeeze development. All new shared ownership homes will be based on this model, starting with any section 106 planning consent from April 2021. In the consultation, the ministry of housing, communities and local government says: “We recognise that many developers will have secured land and will have been preparing planning applications under different assumptions.” The government will offer “transitional arrangements” for schemes funded by the old grants programme, to prevent drops in that pipeline development. This is likely to include the flexibility for local authorities to revert to the old tenure where there has been “significant” work and pre-engagement. The new model aims to broaden the pool of buyers with a minimum initial buy of just 10%, down from 25%. People will also be able to staircase in smaller increments of 1%, with heavily reduced fees. Proposals from the ministry of housing, communities and local government say the new model will give owners more control when they sell their home. The reform builds on a government pledge to make shared ownership fairer and more transparent. It said it expects half of the £11.5bn affordable homes grant will be spent on affordable home ownership tenures and the vast majority of these homes will be under this new model. The consultation closes on 17 December. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette Photo by Jonathan Hordle/Shutterstock