The Intermediary – June 2025 - Flipbook - Page 24
RESIDENTIAL
Opinion
A new era for
Shared Ownership?
W
ith news of the
Government’s
funding for
affordable
housing and
the retirement
of the Help to Buy scheme, there is
more aention than ever on ways to
best help first-time buyers into home
ownership.
Shared Ownership remains one of
the most accessible options for those
with smaller deposits, particularly
in the current economic climate, but
it hasn’t been without its challenges.
That’s why the recent introduction of
the Shared Ownership Code, led by the
Shared Ownership Council, represents
a potentially significant step in the
right direction.
The Code sets out voluntary
standards for housing providers,
aiming to address long-standing issues
that have undermined trust in the
model. These include service charges,
lease extension policies, and clarity
around defect periods, all historical
issues that have affected customer
outcomes. While the Code won’t solve
everything overnight, it does begin
to put clearer protections in place for
consumers and improves consistency
in how Shared Ownership is applied.
Time for transparency
Importantly, the Code responds
to criticisms raised in last year’s
Government report, which
highlighted how inconsistent
practices, and a lack of transparency
were impacting buyers.
In some cases, residents found
themselves facing rising service
charges or unclear repair obligations,
while others were unaware of how
staircasing – gradually buying more
of their home – could help them reach
full ownership. Most significantly,
Government data shows that fewer
than 3% of all customers with Shared
Ownership reached their ultimate goal
of full ownership.
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The Intermediary | June 2025
At West Brom Building Society,
we have long supported Shared
Ownership as part of a diverse
housing market. It’s not a product
that is suitable for everyone, but
for the right customer, in the right
circumstances, it can offer a pathway
to homeownership that might
otherwise be out of reach.
But it must be delivered fairly,
transparently and consistently.
The new Code is designed to raise
standards and rebuild confidence,
among consumers, the housing sector
and the intermediary community.
When customers understand what
they’re signing up for, feel confident
in their housing provider, and are
supported to staircase towards full
ownership, more people stand a
chance of achieving their goal of
homeownership. That’s the model we
should all be striving for.
Buyer constraints
Shared Ownership helps chip away at
the affordability challenge by reducing
the initial deposit and purchase
amount. Buyers only need a deposit
for the share they are buying, not the
full property value.
In an economic climate where many
renters are struggling to save due to
rising living costs and rental prices,
this smaller upfront cost can make a
real difference.
Recent research by West Brom
Building Society found that 45% of
private renters have not yet been able
to start saving for a house deposit.
Many are constrained by high rents,
increased living costs and a lack
of affordable alternatives. Shared
Ownership, if delivered properly, can
help open a door that would otherwise
remain closed.
The success of Shared Ownership
isn’t just about affordability, it’s also
about ensuring those homes are made
available. If the Government is to meet
its housing targets over the next five
years, Shared Ownership can play a
ALASDAIR MCDONALD
is head of intermediaries at
West Brom Building Society
Many [prospective
buyers] are constrained
by high rents, increased
living costs and a lack of
affordable alternatives”
key role in increasing the volume of
affordable new homes and broadening
access to those homes.
Intermediaries have a vital part to
play in this. Shared Ownership is still
unfamiliar territory for many buyers,
and some customers don’t realise
they can staircase to full ownership
– or worry it’s like renting with
strings aached. The intermediary
community can help demystify the
model, explain the protections offered
by the Code, and reassure clients
that the goal of full homeownership
remains achievable.
The Code won’t fix every challenge
overnight, and it is still voluntary,
but its adoption by more providers
signals a growing commitment to
raising the bar. With more support
and more transparency, Shared
Ownership can fulfil its potential as
a viable and sustainable model for
homeownership, especially for those
who might otherwise be priced out.
Shared Ownership, with the right
regulation and clearer protections
is evolving. It’s not perfect, and it
won’t be suitable for every customer.
But thanks to the Code, the sector
is taking steps to build confidence
and raise standards. With the right
advice, provider and product, Shared
Ownership can offer a clear path to
homeownership for those who need
it most. ●
