Rules for selling shared ownership homes could be eased

http://www.theguardian.com/money/2015/jan/31/rules-selling-shared-ownership-homes

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People in shared ownership homes will be allowed to sell them on the open market when they want to move instead of being forced to give their housing association first refusal, under new government proposals.

The housing minister Brandon Lewis said that homeowners in England who wanted to sell to move up the property ladder should not face “unnecessary bureaucracy and red tape”.

Currently the housing association must be given the first chance to buy and will usually have up to eight weeks to put forward a buyer who meets their criteria. Even a property owned outright by the seller must still be offered to the housing association to buy back, typically for 21 years after the 100% purchase was completed. In either case the price of the property is assessed by an independent valuer.

The government said the current process can add months to the time it takes to sell a shared ownership property. It plans to allow homeowners to put their homes up for sale on the open market at the same time that they offer the property to the housing association.

The new rules would not apply to London, where shared ownership comes under the jurisdiction of the mayor.

Shared ownership schemes allow people on low incomes to get access to the property market by buying a stake in a flat or house which they can later increase. Buyers typically start with a 25% or 50% share and pay rent to a housing association on the remainder of the property; they can increase their holding to up to 100%, known as “staircasing”, or sell the portion they own when they want to move.

Lewis said anyone who worked hard and wanted to move up the property ladder should have the opportunity to do so. “Since 2010 we have pulled out all the stops to support those who aspire to own their own home. But when owners of shared ownership properties come to sell they face barriers and bureaucracy in their way,” he said.

“Today I am looking to streamline the process to make it easier to sell on shared ownership properties so those who want to climb the next rung on the property ladder can do so.”

The consultation opened today and will run until the end of February.