As a low-cost home ownership product, Shared Ownership has enabled hundreds of thousands of people to get on the property ladder who otherwise would not have been able to do so. However, despite improvements made to the model over recent years, the government is fully aware that shared owners continue to struggle with a range of serious affordability, transparency, management, staircasing and resale challenges.
Some of these challenges are not unique to the shared ownership model but they frequently have a disproportionate impact on those who have purchased their homes using the product. For example, high and rising service charges are affecting residential long leaseholders across the country irrespective of their management or freehold structure. Yet, because it is explicitly aimed at those on lower-to-middle incomes, sharp increases in service charges often create acute financial pressures for shared owners despite the fact they only own a partial equity stake in their home.
While the government remains committed to shared ownership as an important route into home ownership for those who cannot afford to buy on the open market, we are determined to ensure that the model is fair, transparent and affordable across its lifecycle. That is why, in addition to progressing an ambitious leasehold reform agenda and accelerating the remediation of unsafe buildings to the benefit of shared owners and other long leaseholders, we are taking forward a phased programme of targeted improvements to the shared ownership model to ensure it provides an effective and sustainable route into home ownership.
I am today updating the House on the progress made in phase one of our improvement programme and setting out our intentions in respect of phase two.
Phase one
The focus of the first phase of our improvement plan has been twofold: improving customer experience and giving shared ownership providers greater certainty, stability and confidence to deliver new shared ownership homes.
In terms of customer experience, we made clear that we expect registered providers who secure grant funding through our Social and Affordable Homes Programme (SAHP) to make improvements, including through giving greater consideration to long-term customer affordability, increasing transparency and fairness on costs, and giving customers the ability to opt out of fees for services that are optional.
We also specified that fees charged to Shared Ownership customers should not be used as a source of profit or a means by which to cross subsidise other areas of work. These improvements have been reflected in capital funding guidance for providers and the key information documents provided to prospective buyers of shared ownership homes.
In terms of supporting the delivery of new shared ownership homes, we have provided long-term certainty by confirming that, in the period to 2036, we will not change the provision in our model lease that permits rents to increase by CPI+1% each year. In addition, we have removed Right to Shared Ownership as a contractual requirement of new grant funding and enabled providers to adjust initial shares to meet their target viability on shared ownership sites outside of London.
We have also acted to support shared owners to manage specific challenges, including those resulting from the building safety crisis. Recognising the plight of shared owners living in buildings that require remediation, many of whom are facing unaffordable costs and are more likely to experience failed property transactions, we made changes to the Renters’ Rights Act 2025 to ensure that, subject to certain conditions, shared owners are exempt from the 12-month no re-let period and can return to subletting where an attempted sale falls through.
Finally, we have supported industry efforts to improve standards and consistency for shared ownership. We recognise the voluntary Shared Ownership Code as a constructive, sector-led initiative to improve standards, transparency, and consumer protection for shared ownership buyers and owners.
Phase two
Work has now begun on the second phase of our improvement programme, focused on further steps to address specific barriers and difficulties experienced by shared owners. The work in this phase will be wide-ranging but will include, at a minimum, the following:
Considering measures to reduce existing barriers to staircasing such as upfront and ongoing transaction costs.Exploring options to support resales including an assessment of the efficacy and reasonableness of nomination periods and the fees charged by providers.Developing better information and guidance to help existing shared owners understand and navigate the options available to them.Undertaking a comprehensive review of the functioning of buybacks (or leasehold repurchases) as an exit route for shared owners who, through no fault of their own, find themselves unable either to afford to remain in their home or to sell it.
To support our efforts in this phase of the improvement programme, we will take steps to significantly improve our data quality and collection so that we fully understand the experience of shared owners over time and build a fuller picture of pressures such as long-term affordability. As part of this, we will consider how we can increase compliance with the existing requirement for registered providers to submit data on shared ownership.
As we look to make these further improvements, we want to ensure that shared ownership remains accessible to households on lower-to-middle incomes. Household income eligibility caps for shared ownership have been frozen since 2016. In recognition of the impact of inflation and earnings growth in the period since, I am today announcing that the government is raising them from £80,000 outside London and £90,000 in London to £90,000 outside London and £110,000 in London.
The new caps will take effect in the new year. For outside London, this change will be reflected in the Homes England Capital Funding Guide, and for London it will be reflected in the next Annual Monitoring Report for the London Plan.
We look forward to working in partnership with shared owners, providers, lenders, consumer representatives and other interested parties as we continue our efforts to improve the shared ownership experience.
https://www.theyworkforyou.com/wms/?id=2026-10-26.hcws417.0
seen at 10:00, 27 October in Written Ministerial Statements.