Since the Financial Crisis of 2008-9, more than three million prospective homeowners have missed out on the opportunity to own a home. That’s according to new research by leading specialist mortgage lender Pepper Money, who identified that had pre-crash financial trends continued, 3.3 million more households would have been expected to buy a home.
The findings come in the form of 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 the Rt Hon David Gauke. It 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 DLUHC and MHCLG, UK Finance, Land Registry, the FCA and other shared ownership leaders to create bespoke modelling that rigorously assesses the tenure’s impact on the wider housing landscape.
Rob Barnard, Intermediary Relationship Director at Pepper Money, said: “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.”
The Role of The Specialist Lender
Pepper’s white paper estimates that more than 25 lenders now offer shared ownership mortgages, but most focus on mainstream products, leaving a gap for buyers with more complex financial backgrounds.
Since the pandemic, rising living costs, higher interest rates and a more unpredictable financial landscape have made it harder for many people to access traditional mortgage lending. That’s reflected in a rise in demand for shared ownership mortgages from specialist lenders, with Pepper Money reporting a 21% increase in shared ownership lending over the past year alone.*
Pepper’s white paper highlights how specialist lenders are increasingly supporting buyers whose financial journeys don’t follow a straight line. Many have experienced temporary but significant setbacks, including bereavement, divorce, redundancy or serious illness, life events that don’t define their long-term financial capability. Specialist lenders are stepping in to assess these situations with care and context, rather than relying solely on rigid eligibility criteria.
Rob Barnard, Intermediary Relationship Director at Pepper Money, said “The pressures facing households today are forcing a growing number of people into more complex financial situations - not because they are irresponsible, but because life has become less linear. And shared ownership, by its very nature, serves those who are navigating life’s complications with resilience and ambition.
“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.”
Bridging The Affordability Gap
In addition to championing specialist lending in the sector, Pepper’s white paper also highlights the significant affordability gap that shared ownership has helped to bridge. In 2023–24, the average shared ownership buyer purchased a 40% stake in a home worth £313,100, putting down a deposit of £22,800 and borrowing £99,200. By comparison, the average first-time buyer across England faces a deposit of £68,600, more than three times higher, and a mortgage advance of £223,000. In London, the deposit gap is even wider, reaching £155,000.
Pepper spotlights 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 transformed the route to homeownership, making a tenure like shared ownership essential.
