Research by Pepper Money found that if pre-crash financial trends had continued, an additional 3.3 million households would have been expected to enter the housing market.
Findings come from the white paper, titled ‘Shared Ownership – A Vital Bridge to the Housing Market’, was commissioned by Pepper Money and written by economist Rob Thomas, with policy input from the Rt hon David Gauke.
It showed that shared ownership had played a key role in addressing the UK’s housing crisis, providing a route onto the property ladder for many who would otherwise have been priced out.
The report used data from DLUHC, MHCLG, UK Finance, Land Registry, FCA, and other shared ownership leaders to create models that assessed shared ownership’s impact on the housing market.
Rob Barnard, intermediary relationship director at Pepper Money, said: “For many people today, the dream of owning a home felt increasingly out of reach.
“So much so that our paper estimated that 3.3 million households had missed out since the financial crash.
“House prices had soared, wages hadn’t kept pace, and the cost of renting made saving for a deposit harder than ever.”
Barnard added: “That’s where shared ownership came in, and we believed this should be an option for more people.”
Pepper’s white paper estimated that over 25 lenders now offered shared ownership mortgages.
However, most focused on mainstream products, leaving a gap for buyers with more complex financial backgrounds.
Since the pandemic, rising living costs, higher interest rates, and an unpredictable financial environment have increased demand for shared ownership mortgages from specialist lenders.
Pepper Money reported a 21% rise in shared ownership lending over the past year.
Barnard added: “The pressures facing households today were forcing a growing number of people into more complex financial situations – not because they were irresponsible, but because life had become less linear.
“And shared ownership, by its very nature, served those who were navigating life’s complications with resilience and ambition.
“Our shared ownership borrowers were 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.”
He said: “They were older, more likely to buy as couples, and 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 were creditworthy customers who simply sat just outside the high street mould.
“And yet, rigid box-checking would have seen many of these people turned away.”
He added: “We believed that was neither fair nor sustainable – and that belief was what sparked our white paper.”
