Big Changes for Shared Ownership

By Tim West · 24 July 2024

As the pre-summer holiday conference season concludes and July draws to a close, we find ourselves reflecting on some significant developments in the Shared Ownership sector. Tim West, one of our directors, shares his insights from the recent National Housing Federation’s Affordable Homes Ownership Conference, attended with Kerry Smith, one of ARK’s Shared Ownership experts. This update addresses the crucial changes in affordability assessments and property allocation processes that providers need to be aware of, effective from 1st August.

As we are at the end of the pre summer holiday conference season and hurtling towards the end of July, I thought it worth reflection on one of the most striking issues to come to my attention. Upon attending the National Housing Federation’s Affordable Homes Ownership Conference with Kerry Smith, one of ARK’s Shared Ownership experts, it was noted that over recent weeks there have been some big changes for the Shared Ownership world in how affordability is determined and how properties are allocated. For all grant funded schemes outside of the GLA, this is the last month that the Homes England Affordability Calculator can be used… from 1st August all providers must move to a new affordability process, using a specialist and experienced shared ownership advisor, who is regulated to give mortgage advice and it is recommended to use a 2 stage approach. Also new is that all providers must have in place, and published, a First Come First Serve policy and a Minimum Surplus Income Policy, which again must be live and in place for 1st August.

It was apparent from the Conference that not all parties were fully ready for such changes and Kerry has been busy helping some of our Clients meet this requirement. Ultimately, our advice is not to panic, there are lots of changes, but there is a lot of help out there to help guide you through the process. We are ready and available to help wherever required and please do not hesitate to get in touch with either Tim West or Chris Seeley should our services be of use to anyone struggling with the changes.