Adrian Plant, director of SOWN, (a part of LRG) outlines his hopes and aspirations for shared possession
Why authorities should prioritise consciousness, help and supply
On the Labour Occasion Convention the brand new Secretary of State for MHCLG, Steve Reed, will deal with the Labour Occasion for the primary time. Presumably he’ll use the chance to set out his ambitions and plans for the housing sector and exhibit how his method will differ to his predecessors.
We hope that in doing so, he’ll present help for one of many sectors most in demand and but most unconsidered by the Labour Occasion up to now: shared possession.
Since profitable the election final July, the Labour authorities has did not a lot as point out shared possession in any coverage doc: it was completely absent from the Labour Occasion Manifesto and seems solely within the glossary of the NPPF. As a substitute, Labour has targeted on social lease and boosting the position of native authorities in housing. The federal government has proven willpower on housing coverage, from reforms to native plans to flexibilities within the Reasonably priced Properties Programme. However for a lot of hundreds of would-be patrons, shared possession is the one path to homeownership
Shared possession isn’t a marginal product. Since its inception greater than 4 many years in the past, it has develop into a longtime fixture within the housing panorama. Greater than 200,000 households now dwell in shared possession houses in England, with supply at report ranges. In 2021-22 alone, 19,386 new properties have been introduced ahead, a 14% improve on the earlier 12 months. Demand isn’t the issue – provide and visibility are.
For aspiring householders, affordability has not often seemed extra daunting. As we speak’s first time patrons are paying nearly a 3rd extra to get on the ladder than simply 5 years in the past. The variety of personal renters transferring into house possession has fallen sharply, whereas rising rents and residing prices have stretched family budgets skinny. On this context, shared possession offers a viable and scalable path to possession for individuals who would in any other case be locked out.
But the sector nonetheless suffers from weak communications and chronic myths. Assist to Purchase benefitted from slick, government-backed advertising and marketing: a recognised model, a transparent web site and a trusted supply of knowledge. Shared possession has by no means had this benefit. As a substitute, many misconceptions endure – that it is just for low-income households, that properties are of lesser high quality, that they can’t be resold, or that full possession is inconceivable. None of that is true, however the absence of constant authorities messaging has left confusion in its wake.
If Labour is critical about serving to first-time patrons, shared possession have to be championed on the similar degree as different tenures. Forward of the Labour Occasion Convention, the federal government ought to contemplate these 4 priorities to unlock the sector’s full potential:
- Create a nationwide communications marketing campaign
Give shared possession the identical readability and authority that Assist to Purchase loved. A trusted, government-led model and knowledge hub would dismantle myths and lift consciousness. - Enhance consistency in supply
Guarantee native plans, funding streams and planning steerage help shared possession on an equal footing with different inexpensive housing merchandise, avoiding patchy provision throughout areas. - Hyperlink shared possession to wider affordability measures
Rising rates of interest, frozen Lifetime ISAs and Stamp Responsibility modifications have all compounded affordability pressures. Shared possession ought to sit inside a broader suite of interventions that genuinely decrease obstacles for first time patrons. A method to help first time patrons is lacking. - Encourage mixed-tenure communities
Shared swnership may help construct inclusive neighbourhoods the place social lease, personal sale and Construct to Lease (BTR) coexist. This helps not simply housing supply but additionally social mobility and balanced placemaking.
Shared possession represents simply 1% of the whole housing inventory however it’s rising in recognition, notably amongst older first time patrons, and will do extra nonetheless with the best help. Authorities doesn’t must reinvent the wheel solely to recognise the potential of a product already embedded within the housing system. It merely must again it with the identical political will because it has proven for housebuilding targets and planning reform.
For too many households, house possession has develop into a pipe dream. Shared possession could make it actual. The federal government now has the chance to raise it from coverage afterthought to a central a part of the housing resolution.
