As the prime affordable housing product funded by Government, shared ownership has come under a lot of scrutiny in recent years. Last year's consultation focused on various policy proposals and has led to a variety of changes to the product which will apply to both the 2021-26 funding round as well as having wider implications via the planning system.
Homes England were tasked with amending the model lease to reflect the policy changes and they have taken the opportunity to update sections of the lease at the same time. Our summary describes in more detail the impact of the changes and some of the issues providers will need to consider as they look to implement the new model lease.
Many of the changes will generate internal discussion amongst housing providers as they now turn to the question of implementing the revised product. New features such as the 10 year repairs policy and the 1% staircasing mechanism will require sales and asset management teams to work together to ensure that the policies are clear both to staff and customers – both in terms of what is covered and also what information needs to be regularly provided.
The new Key Information document should help to enhance customer understanding of the product they are purchasing – but will equally need thought on how and when it is incorporated into the sales process. Our team have focused on the practical impact of some of these changes and the supporting information provider's teams will require to introduce new policies for dealing with leaseholders under the new lease.
To view our summary click here.
