Frequently Asked
Questions
Background and purpose
What is the background to this initiative and the formation of the Shared Ownership Council?
Lloyds Banking Group led a strategic review into access to homeownership in 2021, undertaken as a market initiative. What was apparent from this review was that partial ownership schemes, such as shared ownership, would be increasingly important to bridge people from renting to owning, and as a means to secure housing.
Leading from this, Peter Williams, departmental fellow at the Department of Land Economy at the University of Cambridge and an established expert on housing policy and the housing market, agreed to chair an initiative to look at the opportunities around the expansion and improvement of shared ownership, building upon the achievements delivered to date. Lloyds Banking Group provided funding to support this work.
In early 2023, and based on the research findings, the expert industry group, with support from Social Finance, set out a number of proposals which could lead to a better experience of shared ownership and through that generate further momentum for an expanded shared ownership market. The resulting proposals were laid out in a discussion paper which was shared widely with cross-industry participants inviting their feedback.
Between May and July 2023, we received 31 written responses, most of those multiple pages in length, spoke at eight industry forums with wide attendance where we heard verbal feedback, and continued to engage with key government and regulatory stakeholders (e.g. at Homes England, GLA, DLUHC, RSH) on our progress. Further details on respondents is given in the appendix to this document. The purpose of this note is to share with respondents and audiences:
The level of agreement on the need for reform within shared ownership.
The emerging shape of the industry-led framework this is leading to.
The key points raised within qualitative responses and how they are part of our thinking.
The two papers discuss the need for the development and delivery of an industry-led framework in shared ownership, and for an independent Council who could champion and represent our work. There was broad support for the position of reform being needed in shared ownership (84% of respondents agreed) and for the establishment of an industry-led framework (74%). This paved the way forward to setting up the Shared Ownership Council.
What potential do you see for shared ownership?
The need for affordable home ownership opportunities has never been greater. Shared ownership has yet to fulfil its potential with some 202,000 households (1% of the total) but substantial unmet demand. It caters for a range of consumers – from the first-time buyers who find it difficult to transition from rent to ownership, to home-owning households whose circumstances change, to those who are seeking to be able to afford care in the later stages of their life.
We believe that an improved consumer experience of shared ownership can lead to a better and bigger shared ownership market that offers many more households a positive alternative to full ownership or renting.
Ann Santry, chair of the Shared Ownership Council said:
“Shared Ownership has yet to fulfill its potential as an affordable homeownership model. Giving consumers confidence to buy and supporting them on the journey will help to grow the market in a sustainable way. Our new Consumer Code and is designed to establish clear and consistent standards to do this”.
What does the Shared Ownership Council aim to achieve?
The ambition of SOC is to build on the achievements of the shared ownership sector to date, to drive a better consumer experience of shared ownership and support the market growth of the tenure. The Code is intended to standardise good practice from stakeholders across the sector, setting out clear consumer protection standards for the marketing, selling and ongoing management of shared ownership homes. The Code covers the consumer journey from the initial marketing of shared ownership, living as a shared owner and staircasing or selling. In addition to launching and monitoring the Shared Ownership Code to enhance consumer experience within the current environment, the Council intends to be a voice for reform, playing an active role to align stakeholders and influence the future direction of shared ownership.
Independence
How will SOC represent the views of the shared ownership industry and be an independent voice?
The SOC Board comprises four members who bring deep experience and commitment to the growth and success of the shared ownership sector. Ann Santry is a former CEO of Sovereign, Brendon Sarsfield a former CEO of Peabody, Paula Higgins is founder and CEO of the HomeOwners Alliance, and Janet Pope is former Chief Sustainability Officer at Lloyds Banking Group.
A Senior Advisory Group has been formed to provide guidance and expert advice to the Shared Ownership Council. This group includes a representative coverage of stakeholders in the chain including Housing Associations and Registered Providers, mortgage lenders, intermediaries and advisers, legal, sales and marketing organisations, industry bodies and funders of this work. Funders of the initiative are members of the steering group but not board members assuring the independence of the SOC board.
We also have a Working Group which has helped us design the Code and its resources such as the marketing principles. Our working group also includes a broad range of industry stakeholders. .
Which stakeholders are involved in the initiative so far?
The members of the SOC board, Senior Advisory Group, and Working Group voluntary members. Grant funding from Abri, Bromford, Censeo, Citra Living, Clarion, Heylo, Home Group , Hyde, L&Q, Leeds Building Society, Legal & General AH, Live West, Lloyds Banking Group, Metro Finance, Moat, Mortgage Advice Bureau, MTVH, Newbury Building Society, Peabody, Platform, Share to Buy, Sage, SNG, Stonewater, The West Brom, Vistry Group, and Vivid.
We are incubated within the Home Buying and Selling Group, who are supporting this initiative with access to their network and past experience incubating cross-industry initiatives.
Funding
How is the SOC initiative being funded, and by whom?
Start-up funding came from Lloyds Banking Group and this current ‘Establishment Phase’ is being supported by a range of industry participants, so far comprising: Abri, Bromford, Censeo, Citra Living, Clarion, Heylo, Home Group , Hyde, L&Q, Leeds Building Society, Legal & General AH, Live West, Lloyds Banking Group, Metro Finance, Moat, Mortgage Advice Bureau, MTVH, Newbury Building Society, Peabody, Platform, Share to Buy, Sage, SNG, Stonewater, The West Brom, Vistry Group, and Vivid. Once established and its value to stakeholders proven, we envisage sustainable funding will come from a member subscription model.
Code of Good Practice
Does the Code have government and regulation support?
We have been in conversation with government stakeholders (including DLUHC and Homes England), the Regulator of Social Housing and the Housing Ombudsman. All are interested in following our progress, and are helping to facilitate industry access to gather views.
Will SOC be setting up a new Ombusman for consumer complaints?
At this stage, we will anticipate linking up with an existing ombudsman service rather than setting up something new.
Who does the Code apply to?
Housing providers are the key audience for the Code as the majority of the requirements will apply to them. Some of the Code requirements will also apply to the Associate Members, which would include: lenders, mortgage intermediaries, conveyancers, solicitors, sales and marketing organisations, lenders, house builders, estate agents, and freeholders (e.g. those who own the head lease, where the HA is themselves a leaseholder).
As a shared owner / prospective shared owner, I am looking for advice. Where should I go?
We would recommend exploring the following sites for advice: