A cross-sector initiative of housing groups, banks, building societies and other official bodies has launched an official code to standardise best practice and consumer protection for shared ownership in England.
The Shared Ownership Code, released by the Shared Ownership Council, aims to ensure transparency, fairness and improved support for shared owners in the marketing, purchasing and management of their homes.
Housing providers are being encouraged to adopt the code, which has been launched across the country following a four-month pilot with eight housing providers and an 18-month consultation with customers, housing providers, mortgage lenders and sector specialists.
Ann Santry, chair of the Shared Ownership Council, said of the launch:
“A lot of hard work has gone into developing the code, with support from our funders, our senior advisory group of experts, and those involved in the pilot, who demonstrated an unwavering commitment to the process and support towards unlocking a stronger and fairer shared ownership market.
“We feel the code has addressed several of the issues flagged in the Government’s Levelling Up report and believe that shared ownership has a key role to play in addressing housing needs. We are urging housing providers up and down the country to register to adopt the code so we can improve and future-proof the product for the good of current and future shared owners.”
The code has been designed to highlight existing regulations and legal requirements, ‘while asking more of lenders and providers’, particularly around transparency and service quality. It includes a service charge information document (SCID) which providers must share with prospective owners, a guaranteed 12-month defects period, training plans for all staff in shared ownership schemes, and a lease extension notification to inform owners when their lease falls below 90 years.
The release has been backed by leading figures in the housing and banking industry, including Gavin Smart, chief executive of the Chartered Institute of Housing. He commented:
“The launch of the Shared Ownership Code is a welcome step in establishing a stronger and fairer shared ownership market for both the consumers and housing sector. Adoption of the Code by housing providers will help to give shared owners and potential shared owners confidence that their home will be well managed and that their ongoing relationship with their shared ownership landlords will be transparent, fair and well run.”
Andrew Greenwood, deputy chief executive of Leeds Building Society, said the code would be ‘a lifeline’ for those priced out of full home ownership. He added:
“The new Shared Ownership Code is an important step in raising standards, improving the experience for buyers, and strengthening shared ownership’s place in the housing market. We’re calling on all providers to get on board.”
Debra Saunders, head of sales and marketing at LiveWest, said the code offered an opportunity for ‘much-needed consistency’ and has the potential to become an industry benchmark.
She said:
“If all housing providers commit to the same standards, it will become a recognised benchmark for lenders, solicitors, auditors, and the Housing Ombudsman – reassuring all parties that best practice is being followed.
“Signing up to the code is not only about strengthening standards, but also about enhancing the reputation of housing providers and building greater trust with customers. The more early adopters we see, the quicker the benefits will be felt across the sector.”
The Shared Ownership Council was established to improve and aid consistency in the experiences and associated outcomes of shared ownership, for consumers and industry stakeholders. Following a 2021 review of home ownership by Lloyds Banking Group, a cross-industry expert steering group was formed, chaired by Peter Williams, departmental fellow at the Department of Land Economy at the University of Cambridge, and including leaders from Metropolitan Thames Valley Housing, Heylo, Leeds Building Society, the Association of Mortgage Intermediaries, Sesame Bankhall Group, Network Homes, the Chartered Institute of Housing and Lloyds Banking Group.
The proposals from the steering group were developed following research into the opportunities and barriers to growing shared ownership, with the specific aim of uncovering consumer insight from academic literature and other sources.
The council board is chaired by Ann Santry CBE and supported by Social Finance, a not-for-profit enterprise that designs, funds and scales better solutions to complex social issues.
The Shared Ownership Code is now available for shared ownership housing providers to adopt on a voluntary basis – register at https://www.sharedownershipcouncil.org.uk/adopt-the-code
