The Shared Ownership Council’s consultation on the draft code of Conduct comes to an end in September. The current draft Code includes shared ownership providers to share the following key information, documents and data, which must be given to a homeowner buying a shared ownership home to maximise transparency and consumer protections. Are you already sharing this information today and how quickly will you be able to close the gap:
- Clear, truthful sales and advertising material using plain English
- Information that they are presenting a shared ownership scheme
- Key information about the shared ownership scheme, including:
- Rent amount payable on the share not owned
- Likely annual rent increase
- Service charge costs
- Options for staircasing
- Any eligibility requirements or restrictions
- Additional costs like lease extension
- Council tax charge
- Major restrictions in the lease (e.g. subletting)
- Major restrictions in selling (e.g. right of first refusal)
- Information to help buyers understand if shared ownership is right for them
- Resources to help buyers make an informed choice, including independent financial advice
- Explanation of the legal agreement, rights and responsibilities of all parties
- Robust affordability assessment to understand all associated costs and how they may change over time
- For new homes:
- Written reservation agreement
- Summary of home warranty coverage
- Planning consent details
- List of included contents
- Specification details
- Information on building standards
- Details of any exceptional restrictions
- Information on services/facilities transfer
- Health and Safety File
- Explanation of appliance operation
- Warranty and guarantee details
- Building Regulation certificates (if requested)
- Lease agreement with required elements like property description, responsibilities, restrictions, rent details, staircasing method, etc.
- Comprehensive information on shared ownership as a distinct tenure
- Explanation of service charges and other fees in plain English
- Key Information Documents with estimates of service charges/fees
- Details of any service charge caps or arrangements
- Information on structural warranty and defect periods
- List of additional fees and charges (updated annually)
- Explanation of the provider’s relationship to the building
- Information on maintenance and repair obligations
- Defect resolution processes
- Options for managing unplanned costs
- Policy on repayment options for financial hardship
- Information on the staircasing process and associated fees
- Details on the resale process and options
- Information on the complaints process and right to access Ombudsman services
This list covers the key information required by the code, but the full document contains additional details and requirements. The provider should ensure they are complying with all aspects of the code. More information and the latest Code can be found here: https://www.sharedownershipcouncil.org.uk/code-of-good-practice
To find out how Guided Home can transform your shared ownership customer journey and the overnight improve your information sharing and transparency to deliver better outcomes and comply with the Code of Best Practice, book your teams product demo today.
