New Shared Ownership Code

The new Shared Ownership Code was launched last week by the Shared Ownership Council, a cross-industry initiative formed of housing providers, mortgage lenders and sector specialists, with the aim to “drive better experiences for shared owners and best practice across the industry”.

Shared ownership remains a popular and vital product for those who wouldn’t otherwise be able to buy a home. However, it is often criticised for a lack of clarity and high additional costs. The new Shared Ownership Code, launched last week, attempts to address some of these concerns and has been published and piloted by some key sector stakeholders.  

The Shared Ownership Council produced a draft Code in December 2024, following detailed consultation within the industry. Eight housing providers subsequently piloted the Code for four months to test its practical implementation and adoptability. 

Some key principles of the Code are:

• A 14-day cooling off period 
  
  • Customers can cancel their agreement and receive a full refund of their reservation fee within a 14-day period.
• Clarity of all additional fees and charges
  • Housing providers must provide a comprehensive list of additional fees and charges (other than service charges) that are likely to apply throughout the lifetime of the product.
• Service charge transparency
  • A Service Charge Information Document (SCID) must be provided to prospective purchasers at the same time as the existing Key Information Document, with illustrative examples of possible future increases
  • Housing providers must provide annual updates to all shared owners and specifically confirm if costs will rise above previous estimates.
• Training for all responsible staff
  • Clear training plans to be provided for all staff involved in the shared ownership process, so that they can support and explain the product to customers with the necessary clarity.
• 12-month defects period
  • A minimum 12-month defects period to run from the date of purchase;
  • A stated aim to work with housebuilders to move towards a 24-month period in the future.
• Lease extension notification
  • To notify shared owners when their lease term falls below 90 years, or to regularly remind shared owners to check their remaining lease term and of the benefits of extending.

The Code clearly focusses on transparency and fairness, echoing the recent Social Housing (Regulation) Act 2023.  The sector has welcomed the promotion of best practice and consistency and acknowledged the need to educate and inform customers at all stages of their journey. It is also hoped that a standardized model for delivery of shared ownership and increased consumer protection will drive additional investment in the product.  

Housing providers can now choose to register with the Shared Ownership Council to adopt the Code, which has the support of the Chartered Institute of Housing and the National Housing Federation. The Shared Ownership Council are seeking to appoint an operator who will manage the implementation of the Code.