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The Government has launched a new consultation on the future of Shared Ownership.
The consultation, which was first introduced as part of the Affordable Homes Programme, will be used to see "how to best implement the new model" to ensure it can be "smoothly adopted by providers and lenders, and effectively supports aspiring homeowners."
The proposed changes will:
- Reduce the minimum initial share from 25% to 10%
- Introduce a new gradual staircasing offer, to allow people to buy additional shares in their home in 1% instalments with heavily reduced fees
- Introduce a 10-year period during which the shared owner will receive support from their landlord to pay for essential repairs
- Give Shared Ownership leaseholders (shared owners) more control when they come to sell their home
It is also noted that all affordable homes, whether under section 106 or not, will be subject to Right to Shared Ownership. Government say the "Right to Shared Ownership will apply to all new rented homes funded through the Affordable Homes Programme 2021 to 2026, with limited exemptions".
On the new measures on repairs, the National Housing Federation say "the consultation now proposes an annual cap of £500 on internal repairs, which can be rolled on for a year. Shared owners will also still need to pay service charges (where appropriate), contribute into a sinking fund, and take responsibility for health and safety requirements."
In a short statement on the proposed changes, the Fed said: "We know members will still have concerns about managing the risks of introducing a new model during a time of market and economic uncertainty.
"However, we hope these clarifications, including the cap on repair costs, provide the additional certainty that members will need when thinking about bidding under the new programme and what grant would be needed to ensure it is viable."
You can look at the consultation here.