Shared Ownership Consultation

March 26, 2016

Shared ownership helps buyers to gain a foothold on the property ladder through part purchasing and part renting a property. This is usually through leasing schemes with a Housing Association (HA) or other social landlord. Generally the higher the share the lower the rent payable. Over time the buyer can then increase the stake they own and eventually own the property outright. This is known as ‘staircasing’.

An intention to sell must be notified in writing to the HA before the property can be put onto the market. This continues whilst the HA retain a percentage of the property and for 21 years after full ownership is acquired. The HA then has an 8 week period in which to exercise their right to a first refusal to nominate another purchaser.

This can slow the resale process, despite the right not often being exercised. It also restricts the number of mortgage companies prepared to lend on such property.

The consultation, which ends on 28th February 2015, is to consider whether:

  • the right of pre-emption should continue after full ownership; and
  • the period before a property can be put on the market should be reduced.


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