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Proposed reforms of the shared ownership regime may result in a loss of affordable homes due to the increased administration and costs for social housing providers and local authorities.

The reforms announced by the Government in November 2020 will see a new right to shared ownership, a reduction in the minimum equity stake on purchase from 25% to 10%, the ability for homeowners to increase equity in 1% increments, and the introduction of a 10-year repairing obligation on affordable housing providers.

A survey published in the report Shared Ownership Reform: Question Over Viability of 134 social housing providers and local authorities across the UK from the law firm Winckworth Sherwood has found that 57% of social housing providers are not in favour of the reforms and 57% of providers believe it will lead to an overall loss of affordable homes in the sector.

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