New voluntary code will open for formal applications from next month
The New Homes Quality Board (NHQB) has been selected to operate a voluntary code designed to improve the shared ownership customer experience.
NHQB, which operates the entirely separate New Homes Quality Code, has today taken over the running of the Shared Ownership Code.
The code, which was published in June, was set up by temporary body the Shared Ownership Council (SOC) with the backing of 27 housing providers and financial institutions, including Lloyds Bank and Leeds Building Society, alongside housing associations and shared ownership specialists including L&Q, LiveWest, Platform, L&G, Affordable Homes, Heylo and Clarion.
In a statement, the SOC, which will cease to operate on 16th October, said it selected NHQB to operate the code because it “provides experience, infrastructure, and governance to ensure effective implementation of the code and better outcomes for current and future shared owners.”
NHQB has set up a dedicated subsidiary to manage the code, Ann Santry, chair of the Shared Ownership Council will serve temporarily as chair and sit on the NHQB board for three months. Bernie Conroy, consultant and former director of home ownership at Metropolitan, will provide support for three months.
Providers can register interest to adopt the code and can formally apply from 3 November. SOC said 54 organisations have registered interest in adopting but it expects this number to grow.
Santry, chair of the SOC, said: “We are confident that the code will be in safe and capable hands with NHQB. Our shared values, combined with their experience, infrastructure, and governance, will ensure effective implementation and better outcomes for current and future shared owners.”
Emma Toms, chief executive of NHQB, said: “NHQB brings a strong track record and deep expertise from implementing the New Homes Quality Code, which already covers more than 56% of all new build private homes across Britain.
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“We are excited to apply this experience to the Shared Ownership Code, helping to raise standards and ensure shared homeowners benefit from the same high levels of quality and protection.”
Gavin Smart, chief executive of the Chartered Institute of Housing, said: “We are delighted to hear that the NHQB has been selected as the operator for the Shared Ownership Code, giving the code a permanent home and a long-term future. The development of the Code and its role in standardising best practice and consumer protection for shared owners was an important development both for shared owners and shared ownership providers.”
Sue Phillips, who operates information website Shared Ownership Resources, said the move was “an important step in the right direction” when it comes to improving shared owner satisfaction but stressed more needs to be done.
What does the code consist of?
Under the code, providers provide an information document to customers showing a range of scenarios for potential service charge changes and an assessment management plan.
In order to meet the code, providers across England would need to follow the Greater London Authority’s Service Charges Charter, which aims to improve the experience of leaseholders with service charges, as well as collaborate with freeholders on affordability. Providers must flag via annual customer updates if final service charges rise significantly above estimates or inflation.
Other key measures include a 14-day cooling-off period that allows customers to cancel their agreement and receive a full refund; fee transparency where providers must publish all costs associated with shared ownership upfront and a defects liability period extension to 24 months.
The code asks providers to ensure their staff are adequately trained to offer support and improve CORE data reporting.
It also guarantees shared owners a minimum 12-month defects period from purchase completion (after an initial transition period).
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