MPs call for “urgent” reforms to shared ownership

In its most recent findings, the MPs on the Levelling Up, Housing and Communities (LUHC) Committee have called for “urgent” reforms to shared ownership, after their inquiry found uncapped service charges, rising rents and unfair maintenance costs mean it is unaffordable.

The LUHC inquiry looked into shared ownership following a number of issues being raised about shared ownership products by stakeholders in the sector, including its affordability and difficulties facing households in achieving 100% homeownership through shared ownership products. Throughout the report, the Committee call on the Government to act urgently to reform the product and ensure better support is available for shared owners, including for older shared owners under the Older Persons Shared Ownership (OPSO) scheme - paragraphs 48 to 60.

On OPSO, it draws attention to the work of the Older People’s Housing Taskforce and recommends:

"As part of its report, the Older People’s Housing Taskforce must include recommendations for reform of OPSO, focussing on the potential merits of changes to ensure that no rent is charged for the top 25% of equity, regardless of the proportion owned by the shared owner. The Taskforce should publish these recommendations in its report in May 2024, as currently scheduled.”

If you found this of interest, our HAPPI Hour webinar on 7 May will explore shared ownership and older people’s housing further.