Renters’ Rights Act – What it means for Shared Owners

Before this new law, shared owners were treated in law like renters, even though you have a long lease and have invested in your home.

This meant that if a shared owner fell behind by three months or more on rent, the landlord could ask the court to take back the home using a legal rule called “Ground 8”.

If the rent arrears were still at three months or more at the time of the court hearing, the judge had no choice. They had to grant possession to the landlord.

In the past, this led to very serious consequences. In one well-known case, a shared owner lost their home and the money they had invested in it because of this rule.

This is why the change in the law is so important.

The Renters’ Rights Act removes the right for landlords to use Ground 8 for long residential leases.

Any fixed-term lease over 21 years can no longer be treated as an assured tenancy. This includes shared ownership leases.

Most Citizen shared ownership leases are between 99 and 125 years. New shared ownership leases are now 990 years. This means they are no longer covered by the same rules that previously applied.

This is a significant step forward. It gives shared owners greater legal protection and more security in their homes.

Yes, but only through a legal process known as forfeiture. This is a longer and more detailed court process. It gives more safeguards and protection than the previous Ground 8 route.

It’s important to say that ending a lease is always a last resort. At Citizen, our approach to supporting customers in arrears will not change.

If you’re struggling to pay your rent, service charges or major repair costs, please contact us as soon as you can. We have a specialist Money Advice team, and we’ll always work with you to find a solution. Losing your home is the last thing any of us want.

This reform, alongside other proposed changes such as capping ground rents, may increase lender confidence in shared ownership homes.

In time, this could mean better mortgage availability and improved options for shared owners who want to remortgage or sell.