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Industry council launches consultation on shared ownership code
An industry council has launched a consultation on a new code of good practice for shared ownership.
The Shared Ownership Council (SOC) hopes the feedback on its new draft proposals will help address some of the recent issues that have been raised with the product.
The SOC considers shared ownership to be vital in addressing the current housing crisis and estimates there to be around 250,000 shared owner households.
However, MPs called for “urgent” reform to shared ownership earlier this year, after an inquiry found uncapped service charges, rising rents and unfair maintenance costs have made it unaffordable for any, and made a number of recommendations.
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Ann Santry, chair of SOC board, said: “Shared ownership has an important part to play in helping people achieve a stake in home ownership. The code being launched today for consultation aims to drive best practice across all of the providers and others who are part of the journey shared owners are making.
“However, while we recognise the achievements to date we must undertake further reform to this tenure."
The SOC hopes to play a leading role in aligning stakeholders to support reforms that improve shared ownership for consumers and allows the tenure to fulfil its potential.
Supporters of multi-stakeholder group include several major landlords and the SOC wants the draft code which will be tested by shared owners as well as the wider industry.
Although voluntary, it is hoped it will be adopted across the sector.
Paula Higgins, chief executive of the HomeOwners Alliance and board member of SOC, said: “Consumers in shared ownership need fair treatment at all stages of their journey- from pre purchase to living in a leasehold property to deciding to move on.
“The code being launched today for consultation promotes better information, transparency and consistency whilst providing routes to deal with complaints and is a first step on the road to reform to give shared owners a better deal.”
In response to the SOC consultation launch, Nicole Sharp, chief customer officer at SNG said: “Shared ownership is a hugely valuable way for people to start owning their home and it has an important role in delivering new housing.
"We also know from listening to our customers that it can be improved and the Shared Ownership Council offers the opportunity to keep building a better product. We actively encourage any shared owners to be part of this through the upcoming consultation, so we can continue to build up the experience of shared ownership.”
Earlier this month, two major landlords signed a deal with a shared ownership platform after a two-month pilot which resulted in a 50% increase in staircasing transactions.
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