Navigating the New Shared Ownership Code

15 July, 2025 3 minutes reading time

What You Need to Know

Shared ownership has long been a vital stepping stone onto the property ladder for many in the UK. However, the journey for shared owners has, at times, been complex. Acknowledging this, the Shared Ownership Council, a cross-industry initiative, recently launched a new, comprehensive Shared Ownership Code (the Code). The code aims to enhance transparency, bolster consumer protection, and standardise best practices across the sector.

The Shared Ownership Council released a draft Code in December 2024 after extensive consultation within the industry. Subsequently, eight housing providers piloted the Code for four months to evaluate its practical application and ease of adoption.

Greater Clarity & Transparency

One of the Code’s primary objectives is to clarify the often opaque aspects of shared ownership. Previously, buyers sometimes faced unexpected costs or unclear financial commitments. The new Code addresses these issues directly.

Housing providers must now supply a detailed Service Charge Information Document (SCID). This document goes beyond a simple estimate by providing illustrative examples of how service charges may vary over time. This proactive measure aims to help buyers gain a clearer understanding of their ongoing financial commitments. Additionally, providers must present a comprehensive list of all additional charges that could arise during the product’s lifespan, excluding service charges.

Strengthened Consumer Protection

The Code also introduces strong measures to protect shared owners throughout their purchasing process and afterwards. Importantly, a 14-day cooling-off period is now required. This gives prospective buyers the opportunity to cancel their reservation and receive a full refund within two weeks of committing, allowing for essential time for reflection and careful consideration.

Moreover, the Code sets a minimum 12-month defects period from the date of purchase. This offers buyers reassurance regarding the property’s condition and recourse for any issues that arise shortly after moving in. There is also an expressed aim to extend this period to 24 months in the future, further boosting buyer confidence.

Improved Support for Shared Owners

Beyond the initial purchase, the Code emphasises the need for ongoing support for shared owners. Housing providers are now expected to ensure their staff receive comprehensive training to guide and assist customers effectively. This commitment aims to provide clear explanations of the shared ownership product and address any queries or concerns.

Proactive communication is also covered. Shared owners will receive notifications when their lease term drops below 90 years or will be regularly reminded to check their remaining lease term. This helps them avoid potential issues linked to a short lease. Importantly, housing providers must also publish clear policies outlining support for shared owners facing financial hardship, offering solutions such as repayment plans or options for buy-backs or downward staircasing.

A Step Towards Industry-Wide Consistency

While voluntary, the Code stresses transparency and fairness, aligning with the recent Social Housing (Regulation) Act 2023. It has gained significant support from leading industry organisations, including the Chartered Institute of Housing and the National Housing Federation.

For those considering shared ownership, the new Code provides greater reassurance. It offers increased transparency, stronger protections for consumers, and improved ongoing support. Meanwhile, in anticipation of widespread adoption, the Council will appoint an operator to oversee its implementation.

If you have any questions about the Code, shared ownership, or purchasing property in general, please feel free to contact us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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