Adrian Plant, SOWN’s director, said the government needed to address the barriers to homeownership at next week’s Spring Statement and “champion shared ownership as an affordable and practical way of addressing this country’s housing crisis”.
Plant said while targets to build more homes were making headlines, homeownership was still a “pipe dream for too many people”.
He said this was especially true for young people, who were “burdened by high rents and stagnant wages”.
Plant wrote: “Shared ownership has made considerable progress in meeting demand in recent years, and yet it has been omitted from any government announcements – everything from the Labour manifesto to the recently published Planning and Infrastructure Bill. Even within the National Planning Policy Framework (NPPF), a reference to shared ownership appears just once, in the glossary.
“Previously, shared ownership was most popular within the 25-35 age demographic (32-37 in London), but that upper age is increasing.”
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He said first-time buyers were paying more to get onto the housing ladder and in the last decade, the number of private renters moving into homeownership had fallen by 23%.
The government’s current position on housing affordability has also led to policies that make it harder to buy a home, Plant said, such as the upcoming increase in stamp duty and freezing of Lifetime ISA limits.
Shared ownership brings social benefits
Plant said the tenure could bridge the gap between renting and full homeownership, create inclusive mixed-income communities and encourage social mobility.
“Communities such as these are more likely to thrive, as they provide opportunities for upward mobility, encourage community cohesion and reduce the impact of any stigma that can be associated with social housing,” he added.
Plant said he wanted the government to do more, as he said the tenure was an affordable and potential win-win opportunity for the government.
He continued: “It deserves the same level of government-assisted marketing as benefitted the now defunct Help to Buy scheme. A new marketing and communications strategy would help to raise awareness and provide guidance on the practicalities and advantages of shared ownership.
“People in shared ownership would be able to benefit from the enhanced stability, security and long-term financial growth that this can provide.”
He said the provision of good-quality homes would address the housing crisis, but there needed to be more awareness of shared ownership.
Plant wrote: “Too many people who aspire to become homeowners are convinced that their dreams will never become reality. Shared ownership can provide much-needed hope.
“The time for the government to act is now.”
