"The challenge for those of us advising would-be Shared Ownership residents is to ensure communication and perception keep pace with these practical improvements. By correcting myths, providing clear guidance and marketing resales as a positive opportunity, the sector can sustain confidence in Shared Ownership for the long term"
- Peter Hawley - SOWN
Shared Ownership has long been positioned as a central plank of housing policy, offering a bridge between private renting and full ownership. It has helped thousands of households take a first step onto the property ladder. Yet while the spotlight falls almost exclusively on new-build delivery, the resale market is often overlooked. That is a serious omission.
For housing associations, local authorities and registered providers, resales matter every bit as much as new supply. They allow households to move on, enable new buyers to enter the system and provide housing associations with ongoing income. Misunderstandings about how resales work, however, risk undermining confidence in the entire tenure.
The scale of the resale market
Contrary to the perception that resales are a niche concern, they are substantial and growing. Research by the University of York found that resales accounted for around 40% of Shared Ownership transactions in 2016–17, up from just 20% in 2007–08. In some regions, resales now outpace new-build completions.
The stock of existing Shared Ownership homes is considerable, and every year thousands of households choose to sell. Some need to relocate for work or family, others are staircasing into full ownership and moving on. For many households, buying through a resale is the only realistic entry point into Shared Ownership, particularly in areas where new supply is limited.
This makes resales fundamental to the credibility of the tenure. If people believe they will face difficulties selling, confidence in Shared Ownership as a whole diminishes.
Myths that persist
Three myths in particular continue to cloud the resale market.
Myth one: resales are more complex than new-build purchases In reality, the process is structured but no more onerous. Housing associations often have nomination rights, allowing them a period to put forward a buyer from their waiting list. This is not delay for its own sake but a mechanism to ensure homes remain targeted at those in greatest need.
Myth two: resales are of poorer value. On the contrary, resales are typically valued at open market rates by an independent valuer, without the ‘new-build premium’ often attached to first sales. Buyers may therefore secure more space for their money. For providers, transparent valuations strengthen trust in the system.
Myth three: Resales are second best. Resale buyers enjoy the same security of tenure and the same right to staircase as new-build purchasers, often with the additional advantages of established communities and mature surroundings. Far from being a compromise, they can be an attractive route into ownership.
The practical realities
For affordable housing professionals, understanding the mechanics of resales is essential to supporting residents effectively.
First, communication is critical. Buyers need clear information about the nomination period, valuation requirements and the terms of their lease. Sellers need realistic expectations on timescales and pricing. Too often, frustration arises not from the process itself but from the lack of explanation around it.
Second, the wider professional ecosystem must be equipped to deal with resales. Conveyancers, mortgage advisers and estate agents unfamiliar with Shared Ownership can inadvertently create delays. Housing associations should ensure that their staff and recommended partners have the knowledge and training to guide customers through transactions smoothly.
Third, positioning matters. While significant marketing resources are directed towards new-build launches, resales are often under-promoted. Yet for many households, they represent the true front door into homeownership. Presenting them positively – emphasising affordability, transparency and community – is vital.
Why resales matter for the sector
For housing associations, resales can generate income via nomination fees and, in cases of staircasing, additional capital receipts. They are not just a policy obligation but an important part of financial sustainability.
For government, resales offer a way of supporting homeownership without new land or construction. In a climate of constrained delivery and rising costs, enabling smoother resale processes can help achieve homeownership ambitions at scale.
For residents, resales are a litmus test of tenure credibility. People will only step onto the Shared Ownership ladder if they believe they can step off again.
Case study – the Wokingham experience
Take Tom, a first-time buyer in Wokingham, where average house prices exceed £540,000. Shared Ownership enabled him to buy a 50% share of a home close to family and friends. When he chose to move on, the process of selling was more straightforward than he had expected.
“It’s a complete myth that you get locked into Shared Ownership,” he says. “After contacting my housing association and going through the nomination period, I instructed SOWN to market my home. Within five days, I’d accepted an offer. Selling was much easier than I had expected.”
His experience underlines the point: with the right support, resales can be quick, transparent and positive for both buyer and seller.
Looking ahead
Shared Ownership has evolved significantly in recent years, with reforms to lease terms and staircasing rules. Resales too are becoming more professionalised, with specialist agencies (including SOWN) and digital platforms improving efficiency. Institutional investment, such as pension funds acquiring Shared Ownership portfolios, reflects growing confidence in the model.
The challenge for those of us advising would-be Shared Ownership residents is to ensure communication and perception keep pace with these practical improvements. By correcting myths, providing clear guidance and marketing resales as a positive opportunity, the sector can sustain confidence in Shared Ownership for the long term.
Conclusion
Resales are not the neglected sibling of Shared Ownership – they are its backbone. They prove whether the tenure is truly viable, not just at the point of purchase but throughout the life cycle of ownership.
If affordable housing professionals want Shared Ownership to retain its credibility, resales must be promoted, explained and understood as confidently as new supply. Especially in a market in which affordability is under greater scrutiny than ever, resales are evermore important.
