An inquiry into the “real affordability” of England’s two shared dwelling possession schemes has been launched by the Levelling Up, Housing and Communities Committee.
The all-party MPs committee will look how profitable the Shared Possession scheme and Proper to Shared Possession programme are in spreading dwelling possession.
The committee says its probe “is prone to discover challenges round reselling, affordability points comparable to service expenses and upkeep tasks, and questions round mortgage availability and the restricted vary of suppliers is genuinely an inexpensive path to proudly owning a house”.
These measures are designed to assist folks to purchase a share of a property, often from a housing affiliation, who then pay subsidised hire on the remainder.
They’re typically often known as ‘half purchase, half hire’, with shared possession properties requiring a smaller deposit and mortgage, which goals to make it a extra inexpensive route into dwelling possession.
The Shared Possession scheme was first established in 1980, whereas the Proper to Shared Possession programme is delivered by the Reasonably priced Houses Programme, which runs from 2021 to 2026.
The Levelling Up committee will ask quite a few key questions, together with:
- Do the schemes Shared Possession and Proper to Shared Possession present good worth for cash for the potential customers of the scheme?
- What help may be provided to Shared Possession tenants given the affect of leasehold properties?
- Is there a scarcity of mortgage suppliers for Shared Possession properties?
- How viable is full possession by the Shared Possession scheme and/or the Proper to Shared Possession Scheme?
- Are various schemes comparable to ‘Lease to Purchase’ viable and do they provide extra worth for cash?
- What extra must be executed to help first-time consumers and people from decrease maintain incomes onto the property ladder?
The committee is inviting submissions based mostly round these questions till 14 September.
Levelling Up committee chair Clive Betts says: “Affordability of housing and residential possession is a key coverage space, particularly for first-time consumers throughout a cost-of-living disaster.
“Shared possession has, prior to now, been hailed as a solution to the housing disaster for youthful folks, providing the most affordable approach to get on the housing ladder.”
Betts provides: “Within the committee’s inquiry, we wish to look at a few of the limitations to homeownership by the Shared Possession schemes in England and in addition take a look at points such because the challenges confronted by folks in reselling these properties.
“We wish to discover whether or not shared possession is offering the suitable reply for these folks locked out of conventional dwelling possession and who’re hit by rocketing non-public rents.”