Jenrick pushes through shared ownership upheaval

The government has confirmed it is to push ahead with plans to shake up the system of shared ownership just weeks after first mooting the idea.

The changes which, among other things, will see housing association tenants given the right to buy a stake in their homes, have caused some social landlords to review their development programmes amid fears they will impact revenues.

As well as the right to shared ownership for association tenants, the changes will see existing shared ownership purchasers able to increase their stake by increments as small as 1%, and new buyers purchase as little as 10% of a home. The government says it is all part of a plan to create a new national model for shared ownership.

Housing secretary Robert Jenrick announced the wider shake-up in late August, shortly after his appointment, but only proposed giving association tenants a right to buy a stake at the Conservative Party conference in late September.

The government says the changes will allow buyers to get a stake in a £200,000 home for a deposit of as little as £2,000.

At the time, Peabody chief executive Brendan Sarsfield was reported as saying the association was pausing the purchase of a large development site in order to work through the financial implications of the new policy.