The claw-back provision is intended to prevent short-term profit taking on the resale of the house to the detriment of the objectives of the schemes. However, where a person is selling and the clawback amount payable would reduce the proceeds of resale below the initial price actually paid, the legislation provides for the amount of the clawback payable to be reduced to the extent necessary to avoid that result.
The Government’s 2011 housing policy statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, as part of the review of Part V of the Planning and Development Act 2000.
That review is now almost concluded and I have also asked the Housing and Sustainable Communities Agency to provide me with a standalone analysis of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work and I expect to make announcements in this regard in the coming months.
