What is the shared ownership income limit?

What is the shared ownership income limit?
4th August 2023

If you've been exploring your options for stepping onto the property ladder, you might have come across shared ownership. This scheme offers an achievable path to buying your own home, and in this post we're going to dive into one essential aspect of shared ownership – the income limit.

Before we jump into the details, let's have a quick refresher on what shared ownership is. It’s a Government-backed initiative designed to help first-time buyers and those who can't afford to purchase a home on the open market.

In this scheme, you purchase a share (usually between 25% to 75%) of a property, and the remaining share is owned by a housing association or a registered provider. You then pay rent on the portion you don't own. Over time, you can gradually increase your share through a process called "staircasing," eventually owning the property outright if you wish.


The shared ownership income limit

Shared ownership is a fantastic option for many individuals or families, but like any housing program, it has certain eligibility criteria. One of the key criteria is income limits, which are set to ensure that the scheme benefits those who genuinely need it.

  • Outside of London, your annual household income must be less than £80,000.
  • In London, your annual household income must be less than £90,000.
  • You should not be able to afford to buy a home suitable for your housing needs on the open market.
  • You must show you are not in mortgage or rent arrears.
  • You must be able to demonstrate that you have a good credit history (no bad debts or County Court judgments) and can afford the regular payments and costs involved in buying a home.

Shared ownership deposit requirements

Additionally, you will generally need between 5-10% of the equity share that you’re purchasing as a deposit. For example, if you buying a 25% share of a home with a full value of £300,000, the value of your share will be £75,000. If a 5% deposit was required, you would need to put down a deposit of £3,750.

You should also have access to at least £4,000 to cover the other costs of buying a property. This is a guideline figure and the actual amount may vary.

Calculating household income

To determine your income, you need to include your salary (and if you’re looking to buy with someone else, their salary too), plus any other sources of income such as bonuses and overtime.

Keep in mind that some forms of income, like housing benefits, Universal Credit, or disability allowances, might not be counted towards the income limit. This means that if you receive any of these benefits, they won't necessarily disqualify you from the scheme.

If you have any questions about the shared ownership income limit, don’t hesitate to get in touch with the SOWN Team.

If you find that you meet the income limit criteria, shared ownership might just be the perfect solution to take those first steps towards making your dream of buying a home a reality!


Shared ownership could open the door to your dream home. But is it the right move for you?

We can help you decide.

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