Share and share unalike

As a member of the homeownership taskforce, I was surprised to read your headline "Taskforce to cut back shared-ownership schemes" (13 June, page 7).

Your article quotes an unnamed taskforce member saying: "The shared-ownership model needs to be reviewed as people would prefer to maximise their equity stake in the home." This statement highlights the fact that shared owners pay rent whereas on, say, Homebuy they do not – and of course most people would prefer to maximise equity. I am sure most people who buy through Homebuy would like to buy outright. Herein lies an important point that I am sure the Treasury will keep an eye on.

The fact is, shared ownership caters for a lower income group than Homebuy. Like-for-like in grant terms, people wanting to buy a home valued at £160,000 would need a salary of £25,000 to £28,000 buying through shared ownership and about £40,000 if buying through Homebuy. If Homebuy were to be targeted at people on incomes of £25,000 to £28,000, the grant take would have to increase by 50-100%. That is why shared ownership is most likely to remain a favoured Treasury option, and why last year's Office of the Deputy Prime Minister evaluation concluded that shared ownership is the "most effective low-cost homeownership product in public subsidy terms".

I think the taskforce member is suggesting that people who buy through Homebuy have higher customer satisfaction rates than those in shared ownership. I am sure that's true – but it is hardly surprising. Homebuy allows people to buy a home of their choosing, usually an older house in an established neighbourhood. They are fortunate that they can afford to buy a 75% stake in their home and not pay rent or have a lease.

Shared ownership, however, is now usually a new-build option, more likely an apartment and probably part of an affordable housing scheme – most likely linked to a regeneration area, not an established neighbourhood. The space standards are likely to be lower than for the older home bought under Homebuy. The shared owner is likely to have bought a 25-50% equity stake and face the prospect of paying rent on the part not bought, and also have to comply with the terms of a lease. Despite all that, customer satisfaction levels for shared ownership remain very high. It really is a question of economics – not that shared ownership needs an overhaul.