Property: Shared Ownership

Baroness Gardner of Parkes Excerpts

Wednesday 23rd March 2016 Lords Chamber

[Viscount Younger of Leckie]

Indeed, this is the very thinking behind our policy, which is to enable those who do not earn too much to get a hand on the housing ladder by buying a share. This would include the very people who the noble Baroness has mentioned, such as teachers and particularly those who work in the very important healthcare and NHS sector. It is exactly what the policy is about. It is obviously more expensive in London—we have had many discussions on that in the housing Bill—but we believe that it is possible. If someone bought a 25% share of a two-bedroom house in London the deposit they would put down would be £3,800, which I understand could still be quite high, but is possible.

[Baroness Gardner of Parkes (Con)]

Will the Minister clarify the position with regard to the actual term “lodger”? Even the Revenue now has a special provision and has increased the amount you can have if you have a lodger. I would have thought it logical that everyone would want people to be able to afford these properties. Can he therefore explain the position, and whether the point to which he has just referred will be amendable in the housing Bill?

[Viscount Younger of Leckie]

I mentioned that people who take a share in a house in a shared ownership scheme can take in a lodger, but I will answer the noble Baroness’s question by saying that there is no statutory definition of a lodger. The term is known in case law, where the test as to whether someone is a lodger or a subtenant is determined by the degree of control retained by the householder over let rooms.