Changes in Benefit Rules for Shared Ownership

The rules around the availability of Housing Benefit which is payable towards the rent part of Shared Ownership costs are changing on the 1st October this year.

Up until now Shared Ownership development for people with disabilities has been restricted to Housing Associations. This has been primarily because of rules in the benefit system. People who are shared owners have long leases on their property, and the only time housing benefit could help with the rent on a long lease has been when the landlord is a Housing Association.

This is changing in October. The new rules say that housing benefit may be payable towards the rental part of any Shared Ownership lease (subject to the usual means tests of course). They also say that shared ownership leases will be 'excluded tenancies' and so not will not have rent levels restricted by the Rent Officer. However, this will change again in April 2008. Further rules being brought in from that date will mean that any benefit towards shared ownership rents charged by organisations who are not registered social landlords will be restricted to the relevant 'Local Housing Allowance'.

This may make other developers or property owners become more interested in shared ownership, which has been a tried and tested success for people with learning disabilities. We look forward to seeing whether this relaxation of the rules promotes new developments and will post any interesting news of this for our visitors.

Housing Options, Stanelaw House, Sutton Lane, Sutton, Witney, Oxfordshire, OX29 5RY, United Kingdom
Telephone: +44 (0)845 4561497 E-mail: enquiries@housingoptions.org.uk