The government has announced plans to increase the household income caps for Shared Ownership, meaning more people could soon be eligible to take their first step onto the property ladder.
If you’ve previously considered Shared Ownership but found your household income was too high to qualify, this change could mean you could become eligible when income caps are increased.
Here’s everything you need to know about the changes and what they could mean for your homebuying journey.
Matthew Pennycook, the Minister of State for Housing and Planning at the Ministry of Housing, Communities and Local Government, has announced that maximum household income limits for Shared Ownership will increase for the first time in ten years.
From early 2027, the new maximum limits will be:
This means that households earning up to £110,000 in London or £90,000 elsewhere in England could soon qualify for Shared Ownership, as long as they meet the other eligibility requirements.
Fiona Fletcher-Smith, Chief Executive Officer for L&Q, comments: “The road to a first home is often a rocky one, particularly for parents raising children in London. For many families, the cost of childcare and everyday life leaves little room to save for a deposit. Our research points to just how difficult that balancing act has become.”
“That’s why we’re pleased to see the government’s decision to increase the Shared Ownership income cap to £110,000. It’s an encouraging step that will open the door to homeownership for many more households.”
At L&Q, we’re pleased to see this announcement. Our recent research shows that it’s become increasingly difficult to save for a deposit for a first home, particularly for parents raising children in London. The increase is an encouraging step that will open the door to homeownership for many more households.
Another major announcement for first-time buyers this autumn is the Your First Home scheme – a different scheme that will offer further support for first-time buyers.
Shared Ownership is a government-backed scheme that allows eligible buyers to purchase a share in a property, usually between 10% and 75%, while paying rent on the share they do not own. As their circumstances change, buyers can purchase a larger share in the property through a process called staircasing.
As well as the income caps, there are other eligibility criteria you must meet, such as being unable to afford to buy a suitable home outright and meeting the financial affordability requirements for the home you want to purchase. Some developments may also have additional eligibility criteria, such as having a connection to the local area.
Claire Brenlund, Sales and Marketing Director for L&Q, comments:
“Income caps have remained the same since 2016, without taking into account inflation and the cost of living. L&Q’s research has shown just how difficult it has become for people to get onto the property ladder, particularly families with children living in London, where childcare costs and other expenses make saving for a deposit particularly challenging. Increasing the income thresholds is an important step towards making home ownership more accessible to those who need it.
Together, these announcements represent a positive step forward, creating more opportunities for aspiring buyers to take their first steps onto the property ladder.”
The new income limits are expected to come into effect in early 2027, with the existing limits continuing to apply until the changes take effect. We expect more details to be announced soon. Register your interest to keep up to date.
