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01566 772375

Talk to us:

01566 772375

Government consultation on new national model for shared ownership

The Government has published a consultation on a new national model for shared ownership to make it easier for people to buy more of their own home, including a proposal to allow them to buy in 1% increments.

The Government sees the key to improving housing affordability is to build more homes where they are needed. However, financial constraints are also a recognised impediment to home ownership. This consultation arises from concern about the existing economic barriers to home ownership which are being experienced, particularly by the younger generations.

The new national shared ownership model looks at three main principles. These are intended to make it easier for buyers of shared ownership properties to:

  • Increase their share of the property simply, without lengthy valuation processes, and in smaller chunks.
  • Sell their homes by giving them more control over the sales process. Currently the landlord has the exclusive right to market the property for the first eight weeks. The proposal is to remove this “pre-emption” clause and replace it with a time limited right of first refusal to repurchase the home to re-sell as shared ownership if there is local demand.
  • Get a mortgage, by ensuring there is one preferred national model for shared ownership. This is intended to remove complexity, encourage more lenders to provide mortgages at competitive prices and encourage new entrants in the market to build and run shared ownership schemes.

The consultation closes on 29 September 2019. If you require any more information on this topic from a legal perspective, please contact Michelle Ody on 01566 772375 or email odym@parnalls.com

Claire Wicks

Claire Wicks

Claire is a Chartered Legal Executive and works as part of our Residential Conveyancing Team having joined the firm in 2010. Claire studied with CILEx, the professional body for Chartered Legal Executives and is now a Fellow of the Chartered Institute of Legal Executives.
Claire Wicks

Claire Wicks

Claire is a Chartered Legal Executive and works as part of our Residential Conveyancing Team having joined the firm in 2010. Claire studied with CILEx, the professional body for Chartered Legal Executives and is now a Fellow of the Chartered Institute of Legal Executives.

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