The new Shared Ownership Code and the Code Operator
The Shared Ownership Code (SOC) is a code of practice for registered shared ownership providers. It aims to ensure transparency, fairness, and improved support for shared owners in the marketing, purchasing, and management of new homes. From 3 November 2025 organisations can apply to become a Code Adopter.
In October 2025 the New Homes Quality Board (NHQB), which currently operates the New Homes Quality Code, was selected as the Code Operator for the SOC. NHQB’s role will include compliance monitoring, and complaints adjudication for shared ownership properties. NHQB will not subsume the SOC into the New Homes Quality Code but, rather, has established a subsidiary organisation to operate it.
The SOC includes a statement of principles which adopters must agree to uphold and specific requirements to be met. The requirements are accompanied by practical steps which explain what providers must do to meet the standards of the SOC. They include accessibility and complaints procedure expectations.
By adopting the SOC, shared ownership providers commit to:
- Follow the SOC’s seven overarching principles which are:
1. Clarity of information;
2. Cost transparency;
3. Parity with other new homeowners;
4. Establishment of clear policies on staircasing and selling;
5. Consideration of unplanned costs;
6. Consideration of service charges; and
7. Consideration of vulnerable customers. - Implement all relevant parts of the SOC for homes sold and managed under shared ownership;
- Cooperate with SOC monitoring processes;
- Participate in the SOC operator’s annual review and improvement processes; and
- Accept decisions made by the SOC’s membership committee.
Where registered shared ownership providers fail to adhere to the requirements of the SOC, the operator may remove their registration status and use of the SOC badge.
Withdrawal of NTS guidance and replacement of the CPRs
The National Trading Standards Estate and Letting Agency Team (NTSELAT) has formally withdrawn its guidance on material information. This guidance had previously supported compliance with the Consumer Protection from Unfair Trading Regulations 2008 (CPRs), particularly in the property and lettings sectors.
The withdrawal follows the repeal of the CPRs, which have now been replaced by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). The repeal of the CPRs and withdrawal of NTSELAT guidance has left housing providers without a sector-specific framework for disclosing material information, creating uncertainty about what must be shared under the DMCCA. Whilst the DMCCA still requires businesses to disclose all material information that could influence a consumer’s decision, the absence of tailored guidance has prompted calls for clarification, especially given the CMA’s new power to impose substantial fines without court proceedings.
The DMCCA, which applies to all business to consumer commercial practices, including property sales, introduces several new enforcement powers and obligations. These include:
- Banned Practices List: This introduces a list of 32 commercial practices deemed automatically unfair (such as fake reviews, misleading green claims and drip pricing).
- Material Information Requirements: Businesses must provide clear, upfront information to consumers before a transaction.
- Enhanced Enforcement Powers: The Competition and Markets Authority (CMA) can now impose direct civil penalties of up to £300,000 or 10% of global turnover, for breaches of the DMCCA, without court proceedings.
What should house builders and registered providers do about this?
House builders should ensure compliance with the new DMCCA obligations, particularly given the enforcement powers and penalties which the CMA can now levy. There is still some ambiguity around disclosure obligations following the repeal of the CPRs. House builders would be well advised to continue disclosing all material information when selling new build properties despite this to ensure compliance with the DMCCA pending any clarification.
If shared ownership providers choose to adopt the SOC, many of its principles and requirements support compliance with the DMCCA, particularly around transparency, material information disclosure, and consumer protection. They should continue to regard the guidance on material information in the NTSELAT as persuasive authority as to how they must act throughout the course of their business activities despite it having been withdrawn.
If you need assistance on how the Shared Ownership Code, or the changes to consumer protection legislation, could impact on how you market and sell shared ownership or new build properties, please get in touch with Claire Russell in our Residential Development Sales team or Charlotte Coleman or Yiannis Goeldner-Thompson in our Property Litigation team.