What is the new Shared Ownership lease?
In September 2021, the Government announced a new Affordable Homes Programme (AHP) which would see a £12 billion investment into the housing sector, providing up to 180,000 new homes across the country.
As part of this new programme, there were some notable changes to the Shared Ownership scheme which were put in place to help more people get onto the property ladder. These changes included:
- The minimum initial share being reduced from 25% to 10%.
- The introduction of a 10-year repair warranty during which the shared owner will receive support from their housing provider/landlord to pay for essential repairs.
- The introduction of a new 1% gradual staircasing model enabling shared owners to buy more shares in smaller instalments compare to the previous 10%, with heavily reduced fees.
- Shared owners will be able to take control of the resales process from the landlord at an earlier point, giving them greater influence over the sale of their home.
The intention of this new model is to be more consumer friendly, easier to access and allow shared owners to increase the stake in their home in a more manageable and affordable way.