More than three million households have been unable to get on the housing ladder since the 2008 financial crisis, according to new research from specialist lender Pepper Money, which argues that shared ownership is becoming an essential route into the market.
The lender’s new white paper, Shared Ownership – A Vital Bridge to the Housing Market, authored by economist Rob Thomas with input from former cabinet minister David Gauke, estimates that 3.3 million fewer households have bought homes than would have been expected had pre-crash trends continued.
Drawing on data from DLUHC, UK Finance, Land Registry and the FCA, the report highlights how shared ownership now represents 13% of new build completions – although it still accounts for just 1% of the total housing stock.
Affordability remains the key driver. The average shared ownership buyer in 2023–24 acquired a 40% stake in a £313,100 property with a £22,800 deposit and £99,200 mortgage.
FIRST-TIME BUYERS
By comparison, the average first-time buyer in England put down £68,600 and borrowed £223,000. In London, the average deposit reached £155,000.
Rob Barnard, Intermediary Relationship Director at Pepper Money, says: “For many people today, the dream of owning a home feels increasingly out of reach.
“So much so that our paper estimates that 3.3 million households have missed out on entering the housing market since the financial crash. 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.”
