In 2013, the Housing Agency was asked to conduct a standalone review of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. While an initial draft of the review was received from the Agency, a number of issues have been identified that need further detailed financial analysis in order to fully assess the impact on local authority finances of possible mitigating measures. For example, full information on the status of each local authority’s loan book is required in order to accurately determine the implications of any possible solutions to shared ownership issues for local authority debt management generally. This substantial data collection project involving my Department, the Local Government Management Agency and the local authorities themselves is under way. It will be a number of months before sufficient data has been collected in order to complete the requisite analysis to finalise the review. Pending full conclusion of this review, my Department issued a circular letter to local authorities setting out some of the options and interim actions that might be explored to alleviate the difficulties of those in shared ownership distress, such as allowing use of the Mortgage Arrears Resolution Process and room rental for Shared Ownership mortgage holders. It is accepted that these proposals are not a complete solution to the issues that arise for such mortgage holders but are intended as an interim measure pending the outcome of the review.
