Parliamentary investigators explore the intricacies of joint property ownership plans

The House of Commons Levelling Up, Housing and Communities (LUHC) committee has initiated an inquiry into low-cost shared home ownership schemes in England. The committee, chaired by Clive Betts, aims to examine the barriers to home ownership through the Shared Ownership scheme, a long-standing low-cost homeownership scheme established in 1980.

Shared ownership is often referred to as 'part buy, part rent.' This scheme, which allows people to buy a share of a property from a Housing Association and pay subsidized rent on the rest, is designed to make home ownership more affordable. With smaller deposits and mortgages required, it has been previously touted as an answer to the housing crisis for younger people, offering the cheapest way to get on the housing ladder.

However, the committee's inquiry will also explore challenges around reselling, affordability issues such as service charges and maintenance responsibilities, and the challenges faced by people in reselling these properties. The inquiry is likely to question mortgage availability and the limited range of providers in shared ownership schemes.

The committee will approach various organizations and individuals, including housing associations, government officials, property experts, and stakeholders in shared ownership schemes, to investigate challenges related to shared home ownership, barriers to achieving full ownership, and the affordability of such schemes as routes to home ownership in England.

The closing date for submissions to the inquiry is 14 September. Evidence sessions for this inquiry are likely to begin in October. The Right to Shared Ownership, an alternative pathway to homeownership in England, is delivered through the Affordable Homes Programme 2021-2026.

Clive Betts stated that affordability of housing and home ownership is a key policy area, especially during a cost-of-living crisis. The committee's inquiry will examine challenges associated with shared home ownership schemes, including barriers to achieving full home ownership. The Shared Ownership scheme, the longest lasting low-cost homeownership scheme in the UK, will be under the microscope to determine whether it is providing the right answer for those people locked out of traditional home ownership and hit by rocketing private rents.

It is important to note that shared ownership policies vary between Scotland, Wales, and Northern Ireland. The LUHC committee's inquiry will focus on the Shared Ownership scheme in England only.

The inquiry comes at a crucial time when affordability and accessibility to home ownership are major concerns for many people in England. The findings and recommendations of the inquiry could potentially pave the way for improvements in the Shared Ownership scheme and make it more accessible and affordable for a wider range of people.

Parliamentary investigators explore the intricacies of joint property ownership plans