A voluntary shared ownership code is set for launch to raise standards for homeowners after a survey revealed a declining proportion of households were satisfied with the service provided by their landlord.
The code has been designed to cross over with existing regulations and legal requirements while asking more of shared ownership lenders and providers, particularly around transparency and service quality.
It includes requirements around defects, fees, service charges, lease extensions and staff training. It is also underpinned by six principles that include clarity of information, costs and policies, and how providers deal with service requests and complaints.
The launch of the code follows an extensive national consultation process that included a consumer survey of more than 1,700 current and prospective shared owners, regional consumer focus groups, and a survey completed by 50 industry bodies, including nearly 30 housing providers.
Shared ownership satisfaction on the decline
The consumer survey revealed that 37% of shared owners and former shared owners said they were satisfied with the service provided by their landlord. This compares with the recently published 2023-24 Tenant Satisfaction Measures report, which found that 49.5% of shared owners were satisfied.
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Satisfaction decreased for shared owners after their first year in the home and just 21% said they would recommend shared ownership to a friend.
Feedback from the consultation has led to changes in the initial draft of the code, which will be tested during a pilot phase with eight housing providers including Clarion, Heylo, L&Q, LiveWest and SNG from December 2024 to March 2025. A broader industry launch is planned for spring.
Ann Santry, chair of the Shared Ownership Council, said: “We believe shared ownership has an important role to play in addressing housing needs and helping people start their homeownership journey. In saying this, we also understand that there are challenges with the product [that] must be addressed.
“Our aim is that the code will help raise standards, working in the interests of both customers and providers alike so we can unlock a better and bigger shared ownership market.
“While the code marks a significant step toward ensuring all those who enter shared ownership have the experience they expect, we understand that it cannot address all the challenges that shared owners face. Broader reforms, including legislative support, remain essential to achieving further lasting improvements in shared ownership.”
