SOC Newsletter: April Edition

Shared Ownership Council’s successful launch:

The Shared Ownership Council (SOC) formally launched on Monday 12th February. The team were thrilled to see the positive response it received with our press release being published in and circulated by a good number of forums and press outlets including Mortgage Solutions and British Property Federation. As we look to the months ahead, we are building a plan for how the Council can effectively and meaningfully build and maintain communications with shared owners specifically. The HomeOwners Alliance is pulling together a virtual panel for those who want to be involved in this work, led by one of our Board members, Paula Higgins (CE of HomeOwners Alliance); please see the end of this article for more information.

We have also begun to build an online presence to strengthen awareness of this initiative. At present our main route is via our LinkedIn page so please do give this a follow here.

We already have 400 followers, and will be using this as a means to share regular updates on our progress. Our website has also gathered significant traction, with over 2,000 page views and over 100 subscribers to our mailing list (You can sign up to our mailing list at the bottom of the home page). We are keen to make use of this momentum as we seek to build our collaboration with industry  and facilitate the development and adoption of our ‘Code of Good Practice’ (more on this below). 

Update on Code of Good Practice’s Working Group and their role:

The inaugural Code Working Group meeting was held on 21st February, and had over 30 senior industry representatives and practitioners, spanning from Housing Associations such as Riverside Homes and Heylo, through to builders such as Bellway Homes, and mortgage brokers such as Acumen Mortgages.

The Working Group will be the ‘engine room’ behind the development of our Code of Good Practice, with the responsibility of shaping  the Code’s content and structure and how it will be administered. When fully developed, the Code will be cross-industry and be an industry-led resource. At its heart are  two consumer-focused aims: making it easier to have a clear and fair understanding of shared ownership at the outset; and supporting consumers on their journey once they become shared owners. 

The first meeting focused primarily on the shape of the shared ownership sector, with discussion based around: what are the routes to identifying good practice in the sector; what resources existed that we might draw upon  to help us with our work (and as part of that  who we should be linking  with, throughout the process. This was a valuable discussion, with salient themes including the need for consensus on what is meant by ‘good’ and for whom. There was an appetite to ensure  clarity  on how the shared ownership product is described, with strong recognition of the  value of giving a better sense of the route towards an   ‘end point’.

The discussion will inform the Council’s ongoing approach and priorities, with potential outputs being a deep dive into the tools and resources used by the sector that are working well  and working with  the Advertising Standards Authority to ensure what is produced satisfies widely accepted standards. Crucially, this work has engaged with other Codes, such as the Consumer Code for New Homes.

The  Working Group will concentrate  on the Code; this is currently in an initial draft form, and discussions will centre on building that into a more comprehensive guide which can inform and encourage better practice. Our aim is to engage in  industry consultation in early Summer, alongside consumer consultation.

Update on Senior Advisory Group of Experts and their role: 

The first Senior Advisory Group of Experts (SAGE) meeting was also held in February, with representation from founding funders and from an Industry Group who provided the team with expert insights from the shared ownership ecosystem, prior to the Council being launched (including, but not limited to, Legal and General Homes and Sesame Bankhall Group). Jamie Ratcliff, Chief Communities & Sustainability Officer at SNG and Executive Director of People Partnerships & Sustainability, has kindly agreed to Chair this group.   

This first meeting focussed on the emerging core priorities for the Shared Ownership Council given our work to date, as well as how to secure routes to meaningful consumer engagement.  The next SAGE meeting will be held in late Spring.  

Update on Board:   

We are very excited to welcome the Council’s fourth Board member, Janet Pope. Janet will sit alongside Paula Higgins, Brendan Sarsfield, and the Council’s Chair, Ann Santry, and work with the Working Group, SAGE and the Core Delivery Team to deliver the Council’s mission.

Janet joined Lloyds Banking Group in 2008 to run the Savings Business. She was most recently Chief Sustainability Officer, a Group Executive Committee role, which she retired from in December 2023. In this role, she led on a variety of purpose-related issues including access to affordable, quality and sustainable homes, inclusion and sustainability.

She was previously Chief Executive at Alliance Trust Savings, prior to which she was EVP Global Strategy at Visa International.  Janet has extensive non-executive experience in government departments, charities and the private sector. She is currently Chair of the Charities Aid Foundation Bank, Trustee of the Charities Aid Foundation, Trustee of the Foundation for Credit Counselling (StepChange) and Trustee of The Camden School for Girls.

We are looking forward to working with her closely and drawing on her experience to guide the strategic direction of the Council’s work.

Update on Funders

We are delighted to announce 10 new funders for the Shared Ownership Council:

·       Clarion

·       LBG

·       L&Q

·       Metro Finance

·       Mortgage Advice Bureau

·       MTVH

·       Share to Buy

·       Stonewater

·       SNG

·       West Brom

They will join our existing funders in supporting SOC through its mobilisation phase.

·       Censeo

·       Citra Living

·       Heylo

·       L&GAH

·       Leeds Building Society

If you are interested in funding SOC please contact ankita.saxena@socialfinance.org.uk.

Other initiatives launched this month:

This is a section where we spotlight other related initiatives being launched by colleagues who are members of  the Shared Ownership Council, the Working Group and the Senior Advisory Group of Experts. We would hope to develop collaborative relationships with these new initiatives by taking advantage of work they have done  and avoid the need for SOC to replicate that.

SO exchange

We were pleased to see the launch of the SO Exchange in February, a new national community run by and for Shared Ownership professionals building out from the existing knowledge and experience of Amy Nettleton and Kelly McCabe. SO Exchange has already built up a bank of sector knowledge, news and resources, which members can draw upon. The good news is that Amy and Kelly are part of Shared Ownership Council’s Working Group, and we are looking forward to seeing how the work of SO Exchange progresses.

Amy and Kelly say on this work: After almost 20 years of working within Shared Ownership, we've witnessed significant changes over time. However, we currently find ourselves amidst a perfect storm of the escalating cost of living and a housing crisis, compounded by unprecedented levels of change in tenure over the last 18 months.

With the establishment of The SO Exchange, our primary focus lies in promoting inclusivity across the sector. Our aim is to cultivate improved working practices while enhancing knowledge and comprehension of the ever-evolving landscape. Ultimately, our goal remains steadfast: to actualise a safe, secure, and affordable home for all.

We are thrilled to contribute our extensive expertise gained from daily involvement in the sector, alongside our interactions with customers, to the SOC's working group. Furthermore, we eagerly anticipate witnessing the pledges made translate into tangible actions.

 

Private Shared Ownership Symposium

Rupi Hunjan from Censeo (who is part of SOC’s SAGE) brought together a group of over 50 people involved in private shared ownership, representing 80% of the 32 lenders, for a symposium. The group discussed whether private shared ownership is a “fair deal” for consumers, how to improve consumer protections, and how to encourage more lenders to participate in the sector. Discussions included the case for creating a new model lease for private shared ownership, supporting the Code of Good Practice that SOC is developing, and issuing a kitemark.

Rupi said on the symposium: We had lots of positive feedback from lenders after the symposium and the majority feel that shared ownership is a tenure that could help with curtailing the housing crisis. However, there needs to be a consistent and uniform approach to the product going forward and the next stage is to develop this part of the jigsaw further.

Other things happening in the housing sector:

The Levelling Up, Housing and Communities (LUHC) Committee held an inquiry into shared ownership over the Winter period, with oral evidence being given in mid-December by individuals including Clare Miller, Sue Phillips, Alison Wallace and Steve Collins. The purpose of the inquiry was to ‘examine the challenges associated with home ownership schemes’ and expected to ‘explore challenges around reselling, affordability issues such as services charges and maintenance responsibilities, and questions around mortgage availability and the limited range of providers.’

The published report recognizes the need for better data and consistency and makes a strong call for structural reform of the tenure. The Shared Ownership Council published an initial response as follows:

Ann Santry’s (Chair of the Shared Ownership Council) statement in response to publication of the cross-party LUHC Committee report on shared ownership

“The Shared Ownership Council (SOC), an industry led initiative, welcomes the publication today of the cross-party LUHC committee report into shared ownership. The work of the SOC to develop a consumer-facing code with clear and consistent standards aligns with the need identified in the report for a better deal for consumers in terms of access to advice and information.

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 route to full ownership. We acknowledge the need for further reforms of the tenure to help shared ownership fulfil its potential as an affordable home ownership model.”

The Leasehold Reform Bill is currently in reading stages at the House of Lords – it is noted that this Bill does little to help shared owners. As stated by Shared Ownership Resources, ‘The Bill aims to empower existing leaseholders in houses and flats, by making it cheaper and easier to extend their lease or buy their freehold. However, as assured tenants, shared owners are not qualifying leaseholders with statutory rights to leasehold enfranchisement. Consequently, they do not benefit from the proposed reforms.’

Published by Social Finance on 04 April 2024. Please send any questions or comments to prerana.kaneri@socialfinance.org.uk.