Shared Ownership Schemes: Rents and Service Charges

(asked on 28th June 2023) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the potential impact of average changes in levels of (a) rent and (b) service changes for shared ownership tenants in housing associations over the last two years on tenants affected.


Answered by
Rachel Maclean Portrait
Rachel Maclean
This question was answered on 5th July 2023

Shared ownership rents are increased annually in accordance with the terms of the lease. We are however aware of the impact that inflation has had on rents. That is why we welcome the fact that housing associations representing 95% of the sector's shared ownership homes have confirmed - through the National Housing Federation - that they will voluntarily limit rent increases to no more than 7% in 2023-24. We are pleased to note that a significant number of for-profit providers and local authorities have also chosen to adopt this approach. This is a sensible and proportionate measure to protect shared owners from particularly high rent increases, in response to cost of living concerns.

Service charges must reflect the cost of providing services to leaseholders and they should be supplied with clear information about how their charges are set, including any increases. If a shared ownership leaseholder is dissatisfied with this process, they can make an official complaint to their landlord. If this does not resolve the matter, they may be able to ask the Housing Ombudsman to investigate the complaint in some cases. The Ombudsman does not investigate complaints about the level of service charges (or the level of increase), but it may investigate complaints about the calculation, collection, or communication of service charges.

The Government recognises that the existing statutory requirements do not go far enough to enable leaseholders to identify and challenge unfair costs. We will take action to support and empower leasehold homeowners and are due to bring forward further leasehold reforms later in this Parliament.

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