Under changes, new shared ownership homes now provide owners with 1% staircasing options, 10-year repair warranties, and standardisation of lease terms to 990 years – yet existing owners are not covered by these reforms.
The CIH has now urged the government to carry out a review to make sure the scheme is financially sustainable in the long term.
Shared ownership can offer a route to homeownership for people who would otherwise be priced out. However, a report from the CIH found a significant proportion of shared owners show signs of financial instability, and satisfaction is often shown to decline the longer someone lives in their home, particularly for those living in flats.
Megan Hinch, co-author of the report and CIH policy manager, said: “Shared ownership has helped thousands of people take a first step onto the housing ladder who would otherwise have been shut out of it, and it’s important that we don’t lose sight of that.
“But our research shows that affordability can’t just be considered once, at the point someone buys their home. Government, providers and lenders need to work together to build a tenure that is transparent and sustainable across its whole lifecycle.
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“That means better data, clearer information for shared owners, and a proper, evidence-based review of how the model is working in practice.”
