Shared ownership: Short-term expedient or long-term major tenure?

This paper examines British experience with various models of shared ownership (equity sharing low-cost home ownership). It discusses the objectives and financial characteristics of shared ownership schemes in the wider context of initiatives to promote low-cost home ownership. The central question posed is how far this form of tenure can be regarded as a significant and permanent feature of the housing scene. The conditions that would need to be fulfilled, both on the demand side and on the supply side, for this to happen are examined in the light of recent British research. This suggests that the main weakness of the tenure is that it is less financially attractive in the long run than normal purchase, although it may be a good way of reducing risk. The future of the tenure depends on the extent of government support for this rather than other approaches.