A new Shared Ownership Code – designed to drive better experiences for shared owners and improve best practice across the industry – has been launched today.

The final version of the code comes after a four-month pilot with eight housing providers, following extensive consultation with shared owners, landlords, mortgage lenders and sector specialists over an 18-month period.

All landlords who provide shared ownership homes are now being urged to register to adopt the new code.

Although adopting the code is on a voluntary basis, it is hoped the new code will standardise best practice and consumer protection for shared ownership. It aims to ensure transparency, fairness and improved support for shared owners in marketing, purchasing, and management of their homes.

The code is currently stewarded by the Shared Ownership Council, a cross-sector initiative set up to drive improvements to the shared owner experience and unlock a stronger and fairer shared ownership market.

The draft Shared Ownership Code was initially released in December 2024, shaped by insights from a comprehensive consultation with industry and shared owners. Following its publication, eight housing providers volunteered to pilot the code to ensure it is clear and practical for wider implementation. The providers were Clarion Housing Group, Heylo, Housing 21, L&Q, LiveWest, Onward, SNG, and Stonewater.

During the pilot, each provider undertook a gap analysis, developed an action plan for the pilot period, and participated in peer forums.

Through the pilot, the council tested adoptability, refined the code and developed priority guidance, templates and adoption processes for providers.

Key updates to the Shared Ownership Code, include:

  • Service charges: the code has refined service charge requirements and introduces a service charge information document (SCID), which providers must share with prospective shared owners alongside a summary of costs key information document. Providers must flag in annual customer updates if final service charges rise significantly above estimates or inflation
  • Defects period: the code guarantees shared owners a minimum 12-month defects period from purchase completion (after an initial transition period), improving on the current system where many receive less. The 12-month minimum is a meaningful improvement, with an ambition to work with housebuilders to move towards 24 months in the future
  • Lease extension policies: the code’s lease extension requirements have been updated to better align with expected reforms, with providers required to adopt one of three policies set out in the code.

Providers involved in the pilot also suggested several new requirements, some of which include:

  • Training plans: to develop clear training plans for all staff in shared ownership, ensuring they have the knowledge and skills to effectively support shared owners
  • Lease extension notification: to notify shared owners when their lease falls below 90 years, or, if data is insufficient, to regularly remind shared owners of the benefits of extending and to check their lease term.

Ann Santry, Chair of the Shared Ownership Council, said: “A lot of hard work has gone into developing the code, with support from our funders, our senior advisory group of experts, and those involved in the pilot, who demonstrated an unwavering commitment to the process and support towards unlocking a stronger and fairer shared ownership market.

“We feel the code has addressed several of the issues flagged in the government’s Levelling Up report and believe that shared ownership has a key role to play in addressing housing needs. We are urging housing providers up and down the country to register to adopt the code so we can improve and future-proof the product for the good of current and future shared owners.”

Paula Higgins, Chief Executive of The HomeOwners Alliance, and board member of the Shared Ownership Council, added: “The launch of the Shared Ownership Code to the wider industry marks a significant step forward to improve the experience of shared owners across the country.

“If widely adopted, the code has the potential to make a real and lasting difference to both current and future shared owners. I strongly urge all housing associations and other providers to embrace the code and demonstrate their commitment to greater transparency, consistency and fairness in shared ownership.”