MHCLG announces changes to shared ownership

Housing Secretary Robert Jenrick has unveiled a package of measures to help people on lower incomes get onto the housing ladder.

As part of the measures, the government will review a new national model for shared ownership to make it easier for people to buy more of their own home, including allowing them to buy in one per cent increments. They currently have to buy an increased share in 10 per cent chunks, which can be as much as £45,000 per time.

Shared ownership is used to buy a proportion of their home – which can be as little as 25 per cent – and then pay a subsidised rent on the rest.

The Housing Secretary also announced he will look to reform the planning system to increase housing delivery and make home ownership more affordable for people looking to buy their first property, particularly in areas which are least affordable.

Jenrick said: “Building the houses this country needs is a central priority of this government. We know that most people still want to own their own home, but for many the dream seems a remote one. My mission is to increase the number of homes that are being delivered and to get more young people and families onto the housing ladder, particularly those on lower incomes.

“That’s why I am announcing radical changes to shared ownership so we can make it simpler and easier for tens of thousands trying to buy own their own home. Help to Buy, the cut to Stamp Duty and our home-building programmes are already making a real difference, but I am clear we need to go much further if we are to make the housing market work. I will be looking at ensuring young people from Cornwall to Cumbria aren’t priced out of their home areas and how we can build public support for more house building and better planning. This government will help a new generation to own their home.”