Landlord says raising London cap from £90,000 to £120,000 would better reflect wage growth and house prices
Clarion Housing Group has called on the government to raise shared ownership eligibility caps to maintain the product’s affordability for dual income working households.
The current household income threshold for shared ownership is £80,000 outside London and £90,000 in London, which have not been updated since 2016.
Clarion said these limits are out of step with earnings growth and the cost of housing and “price out the key workers shared ownership was designed for”.
To remedy this, the 125,000-home landlord has recommended a new limit of £120,000 in London and £110,000 for the rest of the country.
It used the example of a mid-career teacher earning roughly £47,000 in London, which means two teachers buying together can “easily exceed” the £90,000 cap. They would be ruled ineligible for shared ownership “despite having no real prospect of affording a full market purchase”.
At Clarion, the average deposit for a shared ownership property is under £11,000, with most buyers starting with a 5-10% deposit on their share. More than 500 households have moved into a Clarion shared ownership home over the last year.
Clare Miller, chief executive at Clarion Housing Group, said: “Raising the London shared ownership income cap would not expand the scheme beyond its original purpose.
”It would restore it. Reflecting inflation, recognising modern public-sector pay structures, and keeping housing costs within sustainable limits - all without adding pressure to public finances.
“Updating the income threshold is a practical, cost-free change. But for the working households the system was designed to support, it would make all the difference.”
The shared ownership model allows buyers to purchase a share of a home, typically between 25% and 50%, and pay rent on the remaining share owned by a housing association. Customers can increase their share over time.
No comments yet