Since the 2008 financial crisis, more than three million potential homeowners have missed out on the opportunity to own a home.
This is according to new research by specialist lender Pepper Money, which indicates that had pre-crash financial trends continued, 3.3 million more households would have got on the property ladder.
The conclusions come from a white paper: Shared Ownership – A Vital Bridge to the Housing Market, commissioned by Pepper Money and authored by economist Rob Thomas with policy input from former Cabinet minister David Gauke.
The paper reveals that shared ownership is playing a critical role in addressing the UK’s housing crisis, offering a vital route onto the property ladder for thousands who would have otherwise been priced out.
The paper aggregates data from Department for Levelling Up, Housing and Communities (DLUHC) and its successor Ministry of Housing, Communities and Local Government MHCLG, UK Finance, Land Registry, the FCA and other shared ownership leaders.
Commenting on the paper’s findings Pepper Money intermediary relationship director Rob Barnard said that for many people today, the dream of owning a home felt increasingly out of reach.
“House prices have soared, wages haven’t kept pace, and the cost of renting makes saving for a deposit harder than ever. That’s where shared ownership comes in, and we believe this should be an option for more people.”
Complex financial situations
He added that the pressures facing households now are forcing a growing number of people into more complex financial situations – not because they are irresponsible, but because life had become less linear.
“Our shared ownership borrowers are a case in point. In 2023–24, their average household income was £55,000 – significantly above the estimated £37,000 market-wide figure in 2024. They are older, more likely to buy as couples, and are in a strong position to meet their financial commitments even in a high-inflation environment.
“ What’s more, 50% of Pepper’s lending last year involved customers with no adverse credit – these are creditworthy customers who simply sit just outside the high street mould.
“And yet, rigid box-checking would see many of these people turned away. We believe that’s neither fair nor sustainable – and that belief is what has sparked our white paper.”
Pepper believes that the growth in the shared ownership market has partly been driven by economic pressures. Between 2001 and 2007, the house price-to-earnings ratio rose from 5.1 to 7.8, driven by low interest rates, strong economic growth and population growth. This shift, according to Pepper, transformed the route to homeownership, making a tenure like shared ownership essential.
