Proposed reforms

The Government proposes the introduction of a new national simplified model for shared ownership, designed with industry to work for aspiring home owners in today’s housing market.  

This new shared ownership model will effectively support people who cannot afford a mortgage on a market property, providing them with a realistic pathway to full ownership. It will be fairer, more affordable, and more consumer-friendly as well as a better model for the market to deliver. We propose that the new model is based on three main principles:
  • Making it easier for people to increase their share of the property;
  • Making it easier for people to sell the home, and;
  • Introducing a single preferred model that all providers, including for-profit providers, can confidently adopt, thus growing the shared ownership market and enabling lenders to provide more competitive mortgage finance.
Government recognises the key role that lenders, housing associations, local authorities and private investors will play in ensuring a new product is successfully delivered.  

The purpose of the paper is to set out the principles of a new model, to seek views on how the model should be developed further and to ask whether there are other changes we should be considering to improve shared ownership so it becomes a tenure of choice for young, aspiring homeowners struggling to get on to the housing ladder.