Govt urged to review shared ownership income caps locking households out of homeownership
One in 10 households who earn above the shared ownership income caps but do not yet own a property have tried to access the affordable housing scheme but were told they were ineligible, a lender survey found.
Two-thirds of these households said they would consider shared ownership if the income caps were raised to include them.
The findings from the survey of 1,000 English households, carried out by Pepper Money, form part of a white paper, Sustaining the Development of Shared Ownership, alongside analysis of data from the Ministry of Housing, Communities and Local Government (MHCLG), the Office for National Statistics (ONS), UK Finance, the Land Registry and the Financial Conduct Authority (FCA).
The report found that house prices rose by 37% and earnings by 42% between 2016 and 2025, while shared ownership’s household income caps remained fixed at £80,000 outside London and £90,000 in the capital.
The specialist lender has taken its report to Downing Street as evidence that the tenure must evolve so the scheme can continue supporting people who would otherwise struggle to buy a home.
The lender’s second white paper on shared ownership examines 10 key worker occupational groups that together employ 2.9 million people.
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In seven of the 10 occupational groups examined, two full-time employees in the same occupation – each earning the median salary – would exceed the shared ownership income caps both outside London and in the capital. For example, two teaching professionals would earn approximately £95,000 combined nationally, while equivalent couples working as nursing practitioners or paramedics would earn approximately £92,100 and £107,600 respectively.
Among all those surveyed, more than half (58%) live in privately rented accommodation, spending an average of around a third of their monthly take-home income on rent. One in five said that even with both incomes, they were unable to buy a suitable home on the open market.
Support for over-50s
Pepper Money’s report also shows that shared ownership is increasingly supporting older buyers. Purchasers aged 50 or over accounted for 18% of shared ownership purchases in 2024-25, compared with 5% in 2003-04.
Among surveyed respondents aged 45-54, 74% feared they were running out of time to qualify for a suitable mortgage. Among those aged 55-64, 46% believed their age and the shorter mortgage term available could make securing a mortgage difficult.
Rob Barnard, Pepper Money’s intermediary relationship director, added: “The aspiration to own a home does not expire at 50. Shared ownership is increasingly supporting older buyers whose earnings may have progressed, but who still face barriers to purchasing a home.
“Building more homes and helping people afford them must go hand in hand. That requires suitable properties, workable eligibility rules and access to appropriate mortgages.
“The appetite is there: two-thirds of the households we surveyed would consider shared ownership if the caps were raised to include them. Reviewing those caps is a practical starting point for government and the sector to work together, alongside ensuring buyers can access finance that responsibly reflects their circumstances.”
Last month, housebuilder Vistry published a white paper proposing a new shared ownership model supported by institutional funding.
