Service charge regulations and fee transparency are addressed in the new standard
A code aimed at improving the shared ownership consumer experience has begun its trial period with eight housing providers.
The voluntary Shared Ownership Code is intended to cover all organisations that interact with shared owners and seeks to “ensure transparency, fairness, and improved support for shared owners in marketing, purchasing, and managing homes.”
The code has been developed by the Shared Ownership Council, which is backed by 27 housing providers and financial institutions, including Lloyds Bank and Leeds Building Society, alongside housing associations and shared ownership specialists including L&Q, LiveWest, Platform, L&G, Affordable Homes, Heylo and Clarion.
Under the code, providers provide an information document to customers showing a range of scenarios for potential service charge changes and an assessment management plan.
In order to meet the code, providers across England would also follow the Greater London Authority’s Service Charges Charter, which aims to improve the experience of leaseholders with service charges, as well as collaborate with freeholders on affordability.
Other key measures include a 14-day cooling-off period that allows customers to cancel their agreement and receive a full refund; fee transparency where providers must publish all costs associated with shared ownership upfront and a defects liability period extension to 24 months.
The standard also asks providers to ensure their staff are adequately trained to offer support and improve CORE data reporting.
The pilot version of the code was produced using the responses from surveys sent to 1,700 current and prospective shared owners, regional consumer focus groups, and a survey completed by 50 industry bodies, including nearly 30 housing providers. It will be tested with eight providers from December 2024 to March 2025.
Future variations of the standard will involve stakeholders such as lenders and mortgage intermediaries, with pilots set to start in early 2025 before a final code and its membership structure is launched by next summer.
The voluntary organisation’s consultation found that only one in three people were happy with their shared ownership experience. Respondents were most dissatisfied with their landlord’s approach to complaints handling, ongoing costs and property maintenance, while flat owners were less satisfied overall than those in houses.
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