An Open Letter to Matthew Pennycook

Dear Minister,

In advance of next week’s Spring Statement, on behalf of SOWN, and most importantly, first time buyers up and down the country, I am calling for the government to address the significant barriers that prevent first time buyers from getting onto the housing ladder.  

Specifically, to champion shared ownership as an affordable and practical way of addressing this country’s housing crisis. Whilst the government has made clear its intention to vastly increase house building, and ambitious targets are constantly grabbing the headlines, home ownership still remains a pipe dream for too many people. 

This is particularly relevant for young first time buyers who are burdened by high rents and stagnant wages.

Shared ownership has made considerable progress in meeting demand in recent years, and yet it has been omitted from any government announcements – everything from the Labour manifesto to the recently published Planning and Infrastructure Bill. Even within the National Planning Policy Framework (NPPF), a reference to shared ownership appears just once, in the glossary.

Previously shared ownership was most popular within the 25-35 age demographic (32-37 in London), but that upper age is increasing. 

Today’s first-time buyers are paying almost a third more to get on the property ladder than they were five years ago and in the last decade the number of private renters moving into home ownership fell by 23%. 

The government’s current stance on housing affordability has resulted in policies that are making it even harder for first time buyers to enter the market. The recent increases in Stamp Duty and the freezing of Lifetime ISAs have increased the barriers.

First-time buyers represent a major demographic of hardworking people who aspire to own their own homes. Yet in recent discussions around housing, there seems to be more emphasis on social housing waiting lists than the struggles faced by first-time buyers. 

And yet there is a solution: shared ownership can help to bridge the gap between renting and full homeownership. This can help to create more inclusive mixed-income communities and foster greater social mobility. Communities such as these are more likely to thrive, as they provide opportunities for upward mobility, encourage community cohesion and reduce the impact of any stigma that can be associated with social housing.

In my capacity as the Director of SOWN, I am calling for the government to do more. 

I believe that shared ownership represents an affordable, and potential win-win opportunity for the government. It deserves the same level of government-assisted marketing as benefited the now defunct Help to Buy scheme. 

A new marketing and communications strategy would help to raise awareness and provide guidance on the practicalities and advantages of shared ownership. People in shared ownership would be able to benefit from the enhanced stability, security and long-term financial growth that this can provide.

In conclusion, the provision of good quality homes can help to address the housing crisis, at no additional cost to the Exchequer, but much more needs to be done to raise awareness of shared ownership. 

Too many people who aspire to become homeowners are convinced that their dreams will never become reality. shared ownership can provide much-needed hope. The time for the government to act is now.

Yours sincerely

Adrian Plant, Director of SOWN, part of Leaders Romans Group