People in shared-ownership housing more likely to be 'stuck' than other household types
People living in shared-ownership schemes are unable to move home as easily as people living as tenants or home-owners. This is due to lack of flexibility within the shared-ownership sector and full home-ownership still being out of most shared owners' financial reach.
Achieving Mobility in the Intermediate Housing market: Moving up and moving on? published for the Joseph Rowntree Foundation by the Chartered Institute of Housing today (7 November) found that whilst some shared owners are able to move on due to improvements in their financial position, many are unable to afford the greater cost of a full-ownership mortgage.
Shared owners' typical starting investment in their homes has declined from 50 per cent to 40 per cent, with 25 per cent shares now more common. New shared owners are frequently single, often female, and existing shared owners include many lone parents and low-income families.
For many, shared-ownership has become a permanent housing solution. It cannot be regarded just as a 'stepping stone' to full home-ownership since only about half of those moving home in the sector move on to full ownership.
The report also found that for people unable to buy on the open market, being able to move within the shared-ownership sector is important. This is not always acknowledged or supported by shared-ownership providers and results in people living in accommodation that may be too small as families increase in number, or simply no ability for people to move as their needs change – which someone in social housing or full home-ownership could potentially manage more effectively.
Alison Wallace, the author of the report, said: "There is confusion over whether shared-ownership provides affordable market housing or is another form of social housing. Clarification is needed on the social policy aims to focus the role of providers in supporting or controlling the ability of shared owners to move on to their next property."
Roger Harding, Policy Manager for the JRF, said: "Since this research was compiled, the government has announced that shared-ownership will also form part of the home-owner rescue package. It is therefore vital that we provide options for people to move within and out of this tenure to suit their needs as their family and other circumstances change in the medium to longer term."
