Shared ownership can provide an important route onto the housing ladder but additional requirements around valuations and nomination periods can make resales more complicated, Propertymark has warned.
The trade body has highlighted the experience of a West Midlands couple whose shared ownership property took 11 months to sell after their original buyer withdrew from the transaction.
Martin and Stephanie bought their semi-detached home in March 2021 when Martin was 31, allowing them to purchase in a village where buying outright would have been more difficult.
They subsequently decided to move because of changing employment circumstances but encountered a series of complications when selling their share.
RESALE CHALLENGES
After putting the property on the market in October 2023, the couple accepted an offer within two months. However, the buyer later withdrew after concerns were raised about the property’s valuation and instead purchased a home outside shared ownership.
The collapse also resulted in Martin and Stephanie losing their intended onward purchase.
Unlike a conventional sale, shared ownership owners cannot simply set or negotiate their own asking price. A valuation is generally required from a RICS-qualified surveyor and is normally valid for three months, potentially requiring a new valuation if the transaction takes longer.
Housing providers can also have a nomination period during which they are able to find a buyer before the property can be marketed more widely.
After struggling to sell for six months, the couple’s estate agent recommended reducing the price, requiring another valuation before the property could be marketed at the lower figure.
Stephanie says: “We had to pay for a lower valuation from the surveyor again before the estate agent could sell our house at a reduced price due to the complexities of shared ownership.”
AGENT EXPERTISE
The couple eventually completed their sale 11 months after first going to market and have since bought a property outright.
Despite their experience, they remain positive about shared ownership and the opportunity it provided to get onto the property ladder.
Latest English Housing Survey figures show there were around 252,000 shared ownership homes in England in 2024/25, up from 161,000 in 2019/20.
Martin says having an estate agent experienced in shared ownership proved particularly valuable during the resale.
He adds: “They were supportive, kept in regular contact and visited us frequently. Most importantly, they had the knowledge and experience of shared ownership that we needed to help us navigate the sale.”
