Pepper Money's new white paper reveals who shared ownership income caps are shutting out — and what the Budget could change
Pepper Money has returned to Downing Street with new data on shared ownership eligibility. One in ten English households earning above the income caps had previously tried to access the scheme and been turned away. Pepper Money says the findings make a clear case for reviewing shared ownership income caps frozen since 2016.
Its latest white paper, Sustaining the Development of Shared Ownership, is authored by economist Rob Thomas. The paper draws on MHCLG, ONS, UK Finance, Land Registry, and FCA data.
The paper also incorporates a OnePoll survey of 1,000 English households earning above the scheme’s thresholds who have not yet purchased. Two thirds of those households said they would consider shared ownership if the caps were raised to include them.
The caps themselves have not moved in a decade. Household income limits sit at £80,000 outside London and £90,000 in the capital — both fixed at their 2016 levels. Between 2016 and 2025, house prices rose by 37% and earnings by 42%, according to the white paper. Yet the shared ownership income caps have not moved.
“The housing market has moved on, but the income caps are still stuck in 2016,” said Rob Barnard, intermediary relationship director at Pepper Money. “Many households now earn too much to qualify, yet lack the deposit or borrowing capacity to buy a suitable home on the open market.”
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The dual-income problem
The gap is sharpest for key workers. The white paper examines ten occupational groups employing a combined 2.9 million people. In seven, two full-time workers each on the median salary for their role would together exceed the income cap — nationally and in London.
Two nursing practitioners earn approximately £92,100 combined. Two teaching professionals, around £95,000, while two paramedics would earn around £107,600. These are couples with steady incomes who cannot reach an open-market deposit and cannot qualify for shared ownership. For brokers, they represent a real client segment with no clean route in.
| Occupation | United Kingdom | London | Dual income median earnings | ||
|---|---|---|---|---|---|
| Median | Third quartile | Median | UK | London | |
| All employees | £39,039 | £54,009 | £49,692 | £78,078 | £99,384 |
| Median dual income above income caps | |||||
| Train and tram drivers | £76,327 | £83,129 | £78,536 | £152,654 | £157,072 |
| Paramedics | £53,818 | £60,860 | £60,797 | £107,636 | £121,594 |
| Teaching professionals | £47,479 | £56,186 | £51,651 | £94,958 | £103,302 |
| Nursing practitioners | £46,069 | £53,210 | £54,320 | £92,138 | £108,640 |
| Social workers | £44,550 | £49,959 | £48,443 | £89,100 | £96,886 |
| Fire service officers | £44,033 | £50,976 | £49,992 | £88,066 | £99,984 |
| Prison service officers | £41,287 | N/A | £46,673 | £82,574 | £93,346 |
| Median dual income below income caps | |||||
| Large goods vehicle drivers | £39,905 | £46,679 | £44,183 | £79,810 | £88,366 |
| Electricians | £39,647 | £49,138 | £40,864 | £79,294 | £81,728 |
| Managers in retail and wholesale | £38,447 | £52,498 | £42,458 | £76,894 | £84,916 |
| Source: Pepper Money, ONS | |||||
Are shared ownership income caps still worth navigating for your clients?
For brokers, the answer is yes — but clients need to understand the shared ownership income caps before expectations are set.
Among all households surveyed, 58% live in privately rented accommodation, spending roughly a third of monthly take-home income on rent. One in five said combined salaries still weren’t enough to buy a suitable home on the open market. For those clients, shared ownership remains one of the few viable routes in — and the deposit requirement is significantly lower than a standard purchase.
The scheme is also serving older buyers in growing numbers. Those aged 50 or over accounted for 18% of shared ownership purchases in 2024–25, up from 5% in 2003–04, per MHCLG data cited in the white paper.
Among surveyed respondents aged 45–54, 74% said they feared running out of time to secure a suitable mortgage. Among those aged 55–64, 46% believed shorter available terms could make borrowing difficult.
Brokers advising this cohort need product knowledge and lender awareness that goes beyond a standard first-time buyer conversation.
“The aspiration to own a home does not expire at 50,” Barnard said. “Shared ownership is increasingly supporting older buyers whose earnings may have progressed, but who still face barriers to purchasing a home.”
The Your First Home factor
The government announced the Your First Home scheme on 26 September 2026. It is expected to offer eligible first-time buyers in England a 20% government-backed equity loan toward a new-build, with a minimum 2.5% deposit. Income and local price caps will be confirmed at the Budget on 28 October 2026.
Rightmove analysis from October 2026 suggested the scheme could more than double the new-builds within reach of the average solo first-time buyer. Required deposits could fall from £10,838 to £6,643. That is a meaningful shift, but the full eligibility rules remain unconfirmed; developer participation is still being assembled.
Shared ownership is operational now. Your First Home is not yet open. For clients who currently qualify for shared ownership, waiting carries a real cost.
“Your First Home has the potential to help more people onto the housing ladder,” Barnard said. “As the government develops its eligibility rules, there is also an opportunity to consider whether existing routes continue to reflect today’s financial realities.”
If the Budget delivers a revision to shared ownership income caps, that is a material pipeline for brokers who already know the scheme.
