Introducing the Revised Shared Ownership Model in the United Kingdom
On September 8, 2020, the Ministry of Housing, Communities & Local Government (MHCLG) unveiled significant proposals aimed at revising the national shared ownership model in the UK. These changes are designed to make homeownership more accessible and to improve the experience for shared owners.
Key Changes to the Shared Ownership Model
The proposed reforms follow a response to a consultation on shared ownership that occurred from August to September 2019, reflecting the government’s commitment to adapt housing policies to better serve the community. The primary alterations include:
- Lowered Minimum Share: The initial stake required to enter the shared ownership scheme has been reduced from 25% to just 10%, allowing a broader range of buyers to participate.
- Flexible Staircasing Options: A new gradual staircasing provision will enable individuals to purchase additional shares in their home with increments as small as 1%, paired with reduced fees to ease the financial burden.
- Enhanced Selling Control: Shared owners will gain greater autonomy when it comes to selling their properties, facilitating a smoother transition for homeowners leaving the scheme.
Next Steps and Future Developments
Following these announcements, MHCLG plans to conduct a technical consultation and will release an updated model lease, further refining the shared ownership framework.
Conclusion
The revised shared ownership model aims to promote accessibility and flexibility within the housing market. By reducing the initial financial commitment and introducing practical options for ownership progression, the UK government is working to empower more individuals on their path to homeownership.