Private shared ownership needs to retain social ethos

It’s important that any new approaches to shared ownership don’t lose sight of this, and erode trust by prioritising profit over the interests of the homeowner.

Working with a number of private house builders, we understand that their motives can be different to those of a housing association.

They are businesses that need to make a healthy return on investment, keep shareholders happy and fuel growth.

Some of our most successful projects have been joint ventures with private house builders because they balance the ambition and drive of a for-profit business with the social purpose of a housing association.

“We need to stop using staircasing as the sole barometer of success.”

This is an approach we’d like to see taken forward by organisations responding to the government’s call for proposals.

One aspect of the consultation that risks losing sight of shared ownership’s true value is the over-focus on ‘staircasing’ – the process of growing an equity stake.

A popular criticism is that not enough people staircase to full ownership. I strongly believe this fails to grasp the purpose of shared ownership and we need to stop using staircasing as the sole barometer of success.

It isn’t just a stepping stone to full ownership. It provides a home for life regardless of whether the buyer becomes a full owner or not.

Some will never increase their share of equity beyond their original purchase, and making that choice isn’t a problem. They are still benefitting from the security of owning a stake in their home, they can still make changes to the property that could increase its value and they can still sell it if they wish.

If the government places too much emphasis on staircasing when reviewing shared ownership proposals, we risk people being warned off the scheme because full ownership isn’t attainable for them.

It’s also important to note that our experience of delivering shared ownership doesn’t reflect the criticism. We sell more than 350 new shared ownership homes each year and a further 150 resales, demonstrating a healthy secondary market.

The government’s call for proposals is another opportunity for housing associations to take the lead on shared ownership by partnering with house builders.

Builders can tap into housing associations’ expertise in affordable housing and share the financial risk associated with new projects.

“The government’s call for proposals is another opportunity for housing associations to take the lead on shared ownership.”

The government now has an opportunity to deliver changes that help to balance the private sector’s need to deliver profitable housebuilding schemes with our sector’s social purpose of delivering affordable properties.

And local authorities have an important role to play, too. The scrapping of the borrowing cap has empowered them and, by drawing on this increased spending power, there is the potential to form a formidable double act with local housing associations.

“The government has an opportunity to deliver changes that help to balance the private sector’s need to deliver profitable housebuilding schemes with our sector’s social purpose.”

Though many councils have the appetite to deliver more homes in their area, they may lack the experience to do so, which makes housing associations the crucial players by providing the skills and capacity, thereby boosting the market.

The housing sector – social or otherwise – should view the government’s call for shared ownership proposals positively.

Yet its success will depend on the social ethos that underpins shared ownership being strengthened, not weakened, by the proposals.

Amy Nettleton, assistant development director of sales and marketing, Aster Group