Shared ownership has rapidly become an accessible pathway onto the property ladder, helping combat the housing crisis. The scheme allows individuals to own a home who might otherwise be unable to, due to high deposits and financial constraints.
Although the benefits are significant, there is stigma around the scheme, partly due to the experiences of those already on their shared ownership journey. It is well-known that tenants’ experiences are far from consistent, which is challenging not only for buyers but for the Housing Associations. This has led to a call for reform with better regulation, which is the aim of the Shared Ownership Code of Conduct.
If your organisation is managing, developing and providing shared ownership homes, here is what you need to know:
What is the Shared Ownership Code of Conduct?
In June, the Shared Ownership Council published their first version of the Code. This is a voluntary initiative which aims to create a consistent approach towards service standards, greater transparency on costs and clarity on what buyers should expect through the process. There is a huge drive for Housing Associations to join the Code – but is it right for you?
What will be required of Housing Associations to adopt the code?
Housing Associations will need to become a ‘pending Code adopter’ by registering online and committing to pay the membership fee. They will then complete the process by completing any onboarding required, update internal policies to align and provide evidence of compliance.
Adopters of the code commit to following the overarching principles, co-operating with monitoring processes, participating in any reviews, and implementing improvements and updates decided by the membership committee. The main focus of the Code is transparency, accessibility and aftercare.
What are the benefits of adoption of the Code?
- Demonstrating commitment to improving the shared ownership process, trust with customers and providers’ reputation.
- Greater transparency and clear expectations being set.
- Standardisation of the process improves the experiences of shared owners overall.
What may be some concerns?
- As the code is voluntary in nature, not everyone may sign up. This may make the enforcement harder and defeat the goal of standardisation.
- Additional administration work may be required. Policies and procedures will need to be amended, which may demand extra resources. Housing Associations will also need to continuously monitor their practices to ensure compliance.
- As adoption includes a membership fee, there are cost implications. There may also be other hidden costs in providing additional training, policy development and compliance monitoring.
So, should the Code be adopted?
Overall – yes it should. If implemented successfully, the Code could help manage buyer expectations, reduce complaints and improve shared owners’ experience. That said, Housing Associations must assess whether the Code is a good fit for their organisation as smaller Housing Associations may face challenges in implementation due to limited resources and reduced capacity.
Further information and frequently asked questions can be found on the Shared Ownership Council website.