"Shared ownership offers a vital bridge to the housing market for so many people who otherwise would struggle to buy their own home, but we know without action, this bridge will get harder to use for those who need it"
- Rob Barnard - Pepper Money
The Government is being urged to reform its shared ownership policy after Pepper Money presented a new white paper to Downing Street. The move highlights the specialist lender’s ongoing campaign for a more inclusive and sustainable shared ownership market.
Rob Barnard, intermediary relationship director at Pepper Money, hand-delivered the report, titled Shared Ownership – A Vital Bridge to the Housing Market, to No.10. The white paper reaffirms the role of shared ownership in an increasingly complex housing landscape and precedes the Government’s upcoming Social and Affordable Homes Programme prospectus, due this autumn. Ministers have confirmed that shared ownership will remain part of the UK’s affordable housing mix.
The paper was produced with input from independent experts, including former Bank of England economist Rob Thomas and former chief secretary to the Treasury David Gauke. It sets out three policy recommendations designed to secure the future of shared ownership and support the Government’s target of building 1.5 million homes before the next General Election:
Establishing an independent body to collect and publish industry data, providing policymakers and stakeholders with a clear evidence base.
Increasing the household income threshold annually in line with average earnings growth. Current limits are £80,000 nationally and £90,000 in London, unchanged since October 2016. Adjusting for inflation, these thresholds have dropped by 35% in real terms. Without reform, more households risk being excluded from shared ownership.
Reviewing Homes England’s Capital Funding Guide to create a more standardised framework that recognises customers who sit just outside mainstream lending criteria.
The report also highlights the affordability gap that shared ownership helps bridge. In 2023–24, the average shared ownership buyer purchased a 40% stake in a property worth £313,100, putting down a £22,800 deposit and borrowing £99,200. In contrast, the average first-time buyer in England required a £69,000 deposit and a £223,000 mortgage advance. The disparity is even greater in London, where the average deposit for a first-time buyer reached £155,000.
“Shared ownership offers a vital bridge to the housing market for so many people who otherwise would struggle to buy their own home, but we know without action, this bridge will get harder to use for those who need it,” said Rob Barnard, intermediary relationship director at Pepper Money.
“Our policy recommendations are pragmatic, cost-effective, and provide certainty for the sector to ensure that shared ownership continues to be the vital pathway to home ownership so many rely on. The Government has rightly outlined their ambition to build 1.5 million homes by the next election, and that can only be achieved by supporting a range of types of home ownership, including shared ownership.
“The unintended consequence of the status quo is a less viable tenure, with shared ownership becoming less accessible for financially capable people seeking their own home and has the potential to undercut the Government’s own bold house building ambitions.
“At Pepper Money, we see people achieving their housing dreams through shared ownership, and we are committed to doing what we can to ensure this can continue. We’ve taken our message and our request directly to the heart of the Government and into the hands of the Prime Minister’s team, and we urge them to act in the forthcoming Affordable Homes Programme to give certainty and a successful future to the tenure."
"We look forward to engaging with the Government where possible to make the housing market more inclusive through financially responsible and sustainable methods.”
