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Right To Shared Ownership - the Tories' latest hpi forever boondoggle


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A staircase to full ownership, 1% at a time.

More consumer-friendly, fairer and more accessible.

https://www.gov.uk/government/publications/right-to-shared-ownership-initial-guidance-for-registered-providers/right-to-shared-ownership-initial-guidance-for-registered-providers

Quote

Introduction

Two-thirds of social housing tenants would like to buy a home, yet only a quarter currently believe they will ever be able to do so. This gap between ambition and expectation is not right. 

That is why we have introduced the new Right to Shared Ownership, which will give the vast majority of social tenants, living in new rented homes delivered by the Affordable Homes Programme 2021-26, the opportunity to purchase a stake in their home and then purchase further shares when they can afford to do so.

The Right to Shared Ownership will give social tenants access to the new Shared Ownership model. This new model is more consumer-friendly, fairer and more accessible and will better enable social tenants to buy more of their property and eventually reach full ownership.

The Right to Shared Ownership will apply to all new rented homes delivered through the Affordable Homes Programme 2021-26, with limited exceptions (see further detail below). 

This guidance has been published to provide providers with an initial overview of the scheme. Full guidance, including the full responsibilities of providers, will be published by Homes England as part of the Capital Funding Guide.

1. Main features of the scheme

1.1. The Right to Shared Ownership will allow eligible tenants who occupy eligible properties to purchase their social or affordable rented on Shared Ownership terms.

1.2. Tenants will be able to buy between 10% and 75% of their home (as per the current Shared Ownership rules). The price of the share will be based on a percentage of the full market value as determined by a Royal Institution of Chartered Surveyors (RICS) qualified independent valuer. The scheme does not involve a discount for the tenant.

1.3. Tenants will then be able to buy further shares and staircase to full ownership, in line with the rules of the new standard Shared Ownership scheme.

1.4. The requirements regarding the rent, service charges, maintenance and repairs for the Right to Shared Ownership is the same as for the new Shared Ownership model

1.5. Right to Shared Ownership requirements are a condition of grant funding in the Affordable Homes Programme 2021-26.

2. Properties in scope

2.1. The Right to Shared Ownership will apply as a condition on grant funding to all social and affordable rented homes built through the new Affordable Homes Programme 2021-26, other than those where a specific exemption applies.

2.2. Providing the tenant(s) satisfies/satisfy the eligibility criteria, providers must approve a Right to Shared Ownership application unless:

  • the property is exempt from the scheme
  • the sale would breach the cost floor rule
  • the sales would be within the criteria set out in section 2.5 below

2.3. The following categories of property will be exempted from the scheme from the outset:

  • local authority homes
  • homes in designated protected areas and rural exemption sites
  • specialist homes for older, disabled and vulnerable people
  • alms houses
  • homes where the landlord is a co-operative housing association
  • homes where the landlord or freeholder is a Community Land Trust

2.4. Providers will be able to block Right to Shared Ownership a sale in cases where the cost floor is breached. A breach occurs if the current market valuation is below the total amount spent on building or acquiring the property, including the grant invested in the property.

2.5. In certain circumstances where a sale under the Right to Shared Ownership scheme would cause practical problems, the property may qualify for an exceptional exemption. For example:

  • if there are legal impediments to a sale (e.g. where the provider is leasing the property and does not have enough legal interest to grant an adequately long sub-lease)
  • if the sale would interfere with regeneration plans for the property
  • if the property requires substantial repairs or remediation, distorting the value of the property

2.6. Tenants will have the right to appeal a decision to block a Right to Shared Ownership sale. Further guidance will be provided on the appeals process and the exceptional exemptions.

2.7. Where possible, providers who are unable to sell a home due to a breach of the cost floor or due to the issues noted in section 2.5, should offer tenants the option of accessing shared ownership on a similar property.

 

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15 minutes ago, zugzwang said:

And if that doesn’t work, then there’ll be Help to Right to Shared Ownership. The government will lend you 20% of your first 1%

Edited by ForGreatLager...
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2.4 says they can block a sale if value falls below original cost  of building price. 

( landlord gets to decide what his profit was at the time?)

So you can buy a bit at peak prices, no discount,  but you can't buy if prices fall. 

You'd be stuck as a 10% owner forever. And the landlord decides how much rent and service charges you pay. 

It's a great scheme for landlords,: it ties the serfs to the land. 

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2 hours ago, zugzwang said:

Two-thirds of social housing tenants would like to buy a home, yet only a quarter currently believe they will ever be able to do so. This gap between ambition and expectation is not right. 

So how the fux does offering someone the right to buy between 10% and 75% actually fulfil that problem statement - it doesn't, what utter nonsense.

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2 hours ago, zugzwang said:

It sounds like an extension of the part rent part buy scheme, confined to big housing providers. Not sure it will make much difference, BUT imagine this was extended to BTL in future. Now that would be radical. 

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52 minutes ago, 24gray24 said:

2.4 says they can block a sale if value falls below original cost  of building price. 

( landlord gets to decide what his profit was at the time?)

So you can buy a bit at peak prices, no discount,  but you can't buy if prices fall. 

You'd be stuck as a 10% owner forever. And the landlord decides how much rent and service charges you pay. 

It's a great scheme for landlords,: it ties the serfs to the land. 

2.4 means that if there’s a property crash, this scheme is basically dead.

What could possibly go wrong?

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3 hours ago, zugzwang said:

Everytime I read about another one of these ridiculous schemes, i hear this in my head. 

 

Edited by Postman
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1 hour ago, Bear Goggles said:

It sounds like an extension of the part rent part buy scheme, confined to big housing providers. Not sure it will make much difference, BUT imagine this was extended to BTL in future. Now that would be radical. 

They've earmarked £12.5bn for it already.

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3 hours ago, Arpeggio said:

Maybe the Tories are actually communists, the division and destruction stage.

Or maybe the Tories are actually Tories? The Tories have always been the party of landed interests.

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16 minutes ago, Dorkins said:

Or maybe the Tories are actually Tories? The Tories have always been the party of landed interests.

It's the iron law of HPC economics.

Everyone's a Marxist except Donald Trump!

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3 hours ago, Dorkins said:

Or maybe the Tories are actually Tories? The Tories have always been the party of landed interests.

Which the banks are very much part of. Who financed Lenin and Trotsky? Whichever way you look at it, the Tories are not helping.

2 hours ago, zugzwang said:

It's the iron law of HPC economics.

Everyone's a Marxist except Donald Trump!

Strange, this thread is about the Tories. So.....tell everyone why Trump is a Marxist.

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19 minutes ago, Arpeggio said:

Which the banks are very much part of. Who financed Lenin and Trotsky? Whichever way you look at it, the Tories are not helping.

Strange, this thread is about the Tories. So.....tell everyone why Trump is a Marxist.

It's you, Locke, cnick, Killer Bunny et al who routinely characterise everything you disapprove of as 'Marxist'.

All I'm doing is pointing out that the same criticisms apply to Trump, in spades.

 

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9 minutes ago, zugzwang said:

It's you, Locke, cnick, Killer Bunny et al who routinely characterise everything you disapprove of as 'Marxist'.

All I'm doing is pointing out that the same criticisms apply to Trump, in spades.

 

+1  Strange how folks that scream 'MaRxIsT' have no idea on what Marxism, or even Socialism is.

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35 minutes ago, zugzwang said:

It's you, Locke, cnick, Killer Bunny et al who routinely characterise everything you disapprove of as 'Marxist'.

All I'm doing is pointing out that the same criticisms apply to Trump, in spades.

The point of my original comment: "Maybe the Tories are actually communists, the division and destruction stage."

......was that by being crony capitalists simultaneously not letting market forces work and obscuring the value of money, they risk creating an atmosphere in which communism looks more attractive.

A bit like your like of modern monetary theory (printing money).

 

30 minutes ago, msi said:

+1  Strange how folks that scream 'MaRxIsT' have no idea on what Marxism, or even Socialism is.

To me healthy democratic socialism is a very simple paying taxes in an equitably proportional way to pay for public services as part of the kind of society we want to live in. e.g. a safety net, law enforcement, defense and education etc.

Just like we have now, except preferably without the waste, quangos, golden handshakes, tax dodging and all the other BS. I suppose not spending money on goods from communist regimes that have save labour camps could also be seen as a sort of form of humanitarian style socialism.

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  • 417 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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