Shared ownership schemes are “drastically failing” to deliver an affordable route to homeownership for too many people and subject buyers to rising rents, uncapped service charges, and a disproportionate exposure to repair and maintenance costs, MPs on the Levelling Up, Housing and Communities (LUHC) Committee have concluded in a report published today.
Commenting on the report, Steve Collins, CEO of affordable rent to buy housing provider, Rentplus, said:
“The Committee’s findings that shared ownership schemes are failing to deliver an affordable route to home ownership for many people sadly don’t come as a surprise. Many of our tenants were priced out of shared ownership due to the need for an unaffordable upfront deposit. Many more were put off by the prospect of getting stuck in a part-rent, part-buy limbo with whilst facing spiralling costs.
“Rent to buy offers a straightforward route onto the housing ladder where tenants are full renters then full owners, without the initial upfront deposit burden.
“We welcome the Committee’s calls for the Government to urgently collect data on both home ownership products to properly assess which represents the better value for money.
“As it stands, the Government is investing millions of pounds into delivering shared ownership schemes without knowing how many people ever become full homeowners as a result.”
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