The Chartered Institute of Housing is calling on the UK Government to undertake a comprehensive review of England's shared ownership scheme, warning that affordability challenges often emerge long after residents have taken their first step onto the property ladder.
The plea follows the publication of a new report, Shared Ownership in England: Assessing the Tenure's Evolving Role, which examines how the scheme has evolved since its introduction in 1980 and identifies areas where improvements are needed to safeguard its future.
Shared ownership has long been viewed as a vital route into affordable homeownership, helping thousands of people purchase a share of a property when buying outright would be beyond their reach. While the report highlights many positive outcomes and success stories, it also reveals growing concerns about the long-term financial sustainability of the tenure.
According to the research, affordability assessments carried out at the point of purchase do not always reflect the financial realities residents face over time. A notable proportion of shared owners show signs of financial instability, while satisfaction levels tend to decline the longer people remain in their homes.
The report found these pressures are particularly acute among residents living in flats, many of whom experience challenges similar to those faced by leaseholders, including rising service charges and ongoing housing costs.
CIH welcomed a series of recent reforms designed to improve the shared ownership experience. These include the introduction of 1% staircasing, a 10-year repair warranty and the standardisation of lease terms to 990 years. The organisation also praised greater emphasis on service charge affordability and transparency within the current Social and Affordable Homes Programme.
However, the report warns that these reforms only apply to newly delivered shared ownership homes. CIH estimates that around 200,000 existing shared owners are excluded from the changes, creating the potential for a two-tier system in which consumer protections vary depending on when a property was purchased.
To address these challenges, the report outlines six key recommendations for government, housing providers and regulators:
- Strengthening regional responsiveness in delivery
- Reforming affordability assessments to account for long-term sustainability
- Enhancing regulatory coordination and oversight
- Promoting greater transparency in staircasing and resale processes
- Improving data infrastructure and longitudinal tracking
- Undertaking a comprehensive, evidence-based review of the tenure
Megan Hinch, co-author of the report and CIH Policy Manager, said:
“Shared ownership has helped thousands of people take a first step onto the housing ladder who would otherwise have been shut out of it, and it's important that we don't lose sight of that. But our research shows that affordability can't just be considered once, at the point someone buys their home. Government, providers and lenders need to work together to build a tenure that is transparent and sustainable across its whole lifecycle. That means better data, clearer information for shared owners, and a proper, evidence-based review of how the model is working in practice.
“Recent reforms have taken the first step in improving shared owners’ experiences, but these can go further to ensure shared ownership is an accessible route towards sustainable homeownership. This includes encouraging providers to sign up to the Shared Ownership Code, which promotes transparency, fairness and consistency for shared owners across the sectors.”
The report also recognises the wider pressures facing housing associations and local authorities, which are responsible for delivering the majority of shared ownership homes across England. Rising regulatory demands, fluctuating interest rates and tighter lending conditions continue to place additional strain on providers.
CIH argues that any future reforms must balance the needs of residents with the operational realities facing housing providers. The organisation believes a fairer, more transparent and financially sustainable model will be essential if shared ownership is to remain a viable route into homeownership for future generations.
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