The government has just announced plans to raise Shared Ownership income caps for the first time since 2016, from £90,000 to £110,000 in London and from £80,000 to £90,000 outside of London.
For buyers who cannot afford a suitable home outright but earn above the current limits, this could open up another route into home ownership.
What are the new Shared Ownership income caps?
The Shared Ownership maximum annual household income caps will increase:
In London: from £90,000 to £110,000.
Outside of London: from £80,000 to £90,000.
These limits apply to household income, rather than giving each buyer a separate allowance. For a joint purchase your incomes are considered together.
The caps are being increased, not removed. You will still need to meet the other eligibility requirements and show that the home is affordable for you.
When will the new income caps take effect?
The statement says the higher limits will take effect in the new year, meaning 2027. It does not specify an exact start date.
Until the changes are introduced, the existing caps of £90,000 in London and £80,000 outside of London continue to apply.
You can explore your options now, however the announcement does not mean you can already buy using the higher thresholds.
What could this mean for buyers in London?
If your household earns more than £90,000 but no more than £110,000, the announced change could bring you within London’s income limit once it takes effect.
For example, two people earning £50,000 each would have a combined income of £100,000. This currently exceeds the limits, but will be under when the new limits come into effect.
Bear in mind that you will still need to satisfy the remaining criteria and pass affordability checks.
What if you are buying outside London?
Outside of England, households earning up to £90,000 will come within the revised limit.
For anyone previously excluded on income alone, the change can make Shared Ownership worth exploring.
Will you still need to meet other eligibility requirements?
Yes. Shared Ownership is intended for people who cannot afford to buy a suitable home outright.
A higher income threshold does not guarantee eligibility for a particular property or approval for a mortgage.
Shared Ownership involves buying a share of a home and paying rent on the remainder. Alongside any mortgage payments, you will need to budget for service charges and other purchase and ownership costs.
Our Shared Ownership eligibility guide explains the current requirements and why they can vary between developments.
Why are the income caps changing?
The government says the increase reflects inflation and earnings growth since the limits were last updated in 2016.
The next phase will examine the costs of buying additional shares, known as Staircasing, as well as resale processes, guidance for owners and buybacks where someone cannot afford to stay or sell.
These areas are being reviewed; the statement does not announce that new rights or policies are already available.
Explore Shared Ownership with Peabody New Homes
If the new thresholds could change your options, now is a good time to find out how Shared Ownership works.
Explore homes with Peabody New Homes and speak to our team about the eligibility requirements for the developments that interest you.
Whether you are buying alone or together, understanding the costs and getting advice on your circumstances can help you decide whether Shared Ownership is right for you.
Shared Ownership income caps FAQs
The announced limits are £110,000 a year per household in London and £90,000 elsewhere in England.
They are expected in 2027. The statement does not give an exact date.
Household income. Joint buyers do not each receive a separate allowance.
You will meet the new income threshold once it's implemented, subject to all other requirements.
