Evolution of the Right to Shared Ownership: how has it changed and been used?

Shared ownership is a long-established affordable housing product - making property ownership more affordable and accessible.

Introduction of the Right to Shared Ownership 

The Right to Shared Ownership was introduced in 2021 to allow social housing tenants, living in new rented homes delivered by the Affordable Homes Programme 2021 – 2026, the right to purchase a stake in their home through shared ownership schemes. 

For a tenant to be able to exercise the right to shared ownership they must be over 18 years old and meet all of the following criteria: 

• Rent a home that is eligible for the right to shared ownership scheme
• Hold an un-demoted tenancy, assured tenancy or Localism Act fixed term tenancy
• Have lived in their current home for at least twelve months
• Been a tenant of social or affordable housing for at least three years overall
• Not be in rent arrears
• Not be subject to legal or bankruptcy proceedings or unfulfilled credit arrangements
• Meet the eligibility criteria of Shared Ownership. 

Guidance on the Right to Shared Ownership

Initial guidance released in September 2020 for registered providers summarised the main features of the right to shared ownership and application processes at that stage.

In December 2022, new guidance was published for tenants providing greater and more accessible detail to potential applicants. 

What's the uptake in Right to Shared Ownership amongst social tenants?

According to the research we have undertaken the right has barely been exercised – and this is despite the fact that registered providers are required to notify tenants of its availability. This may well be because the right only applies to properties funded through the 21-26 AHP and whilst the three-year tenancy criteria was portable, the occupation of the eligible property must have been for a 12 month period. Eligible properties may well have not long reached practical completion and therefore the right might not yet have accrued. Therefore the take up will need to be re-evaluated once the 12 month occupation period has been reached.

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This article was authored by Tom Dickinson, Chartered Legal Executive, and Daniel Plant, Trainee Solicitor at Womble Bond Dickinson.