Last week, the Shared Ownership Council (a body comprising RPs, housebuilders and lenders) published the Shared Ownership Code (the code). It is a response to a feeling among some owners, leaseholders, regulators and the Government that (perhaps unfairly) shared owners were not being treated as well as they should be. Readers will recall that there is a growing policy emphasis on being more transparent, improving communication with residents and listening to them better. It also comes at an interesting time with Homes England refreshing its policy on grant-funded schemes. This is a brief rundown of its tenets.

First, there is a 14-day cooling-off period, during which buyers can cancel their reservation with a full refund of their fees.  

Second, RPs must publish a list of all additional fees and charges payable across what it calls ‘the shared ownership journey’. Fees must be ‘appropriate’.

Third, a defects liability of at least 12 months from completion of the sale (as opposed to practical completion of the flat or house) must be offered. Because this will need to be negotiated with developers, this will be introduced over time. This will potentially mean RPs will need to negotiate longer defects liability periods generally - hopefully, the market will accept this without demur.

Fourth, there are substantial requirements regarding service charges, which is unsurprising as this is one of the most frequent sources of resident unhappiness.

Lastly, there are other requirements as to voluntary lease extensions, staff training, and CORE data reporting.

Although the code is voluntary, it will likely become the de facto standard by which shared ownership landlords are judged, even those not registered with the Shared Ownership Council. Discussion at the NHF's recent Affordable Home Ownership conference was positive; we will watch how it is adopted with interest.

For more information

For more information on the Shared Ownership Code, please contact me.