People will be able to purchase shares in one per cent instalments when staircasing with reduced fees, housing secretary Robert Jenrick has announced.
As well as this, a 10-year period will be introduced for new shared owners, where landlords will cover the costs of any repairs and maintenance.
These changes are part of the £12.2bn investment into affordable housing which was announced at the Budget and includes £700m on new homes from 2016 to 2022.
The updated shared ownership model will only apply in England on homes delivered through the new Affordable Homes Programme, which will begin in 2021.
The Affordable Homes Programme is a £11.5bn fund which aims to provide up to 180,000 new homes across the country, half of which will be affordable.
The rest of the 180,000 new homes will have discounted rent, including 10 per cent for supported housing available to those with physical or mental health challenges.
Homes England will publish its Affordable Homes Programme prospectus this week, and has invited councils, housing associations and private providers to start preparing their bids.
Jenrick said: “Today’s announcement represents the highest single funding commitment to affordable housing in a decade and is part of our comprehensive plans to build back better.
“This government is helping hardworking families and prospective first-time buyers get their feet on the housing ladder in an affordable way.
“Thanks to the range of flexible ownership options being made available, more families across the country will be able to realise their dreams of owning their own home, with half of these homes being made available for ownership.”
As well as delivering homes for affordable ownership, the new programme will deliver homes for Affordable and Social Rent. Funding for Social Rent, which is typically 50 to 60 per cent of market prices, will be open to all housing providers in the UK.
A Right to Shared Ownership scheme will also be available on the majority of rented homes delivered through the programme, giving tenants the right to purchase a stake in their home.
Additionally, the housing secretary has launched a consultation on how to raise accessibility standards for all new homes.
Nick Walkley, chief executive of Homes England, said: “We welcome the launch of the new Affordable Homes fund, which gives Homes England a unique opportunity to work on behalf of the government to accelerate the delivery of high quality, affordable homes.
“The fund will support improved productivity in construction and unlock new economic opportunities across the country. Despite the challenges of Covid-19, this long-term funding settlement gives our partners the confidence they need to invest in new homes and the communities they work for.”