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Income Threshold Changes for Shared Ownership

Generally, if you wish to purchase a property through Shared Ownership in England, you must have a household income of less than £60,000 annually.

The exception to this rule is property in London, which has a higher income threshold to account for the higher property prices in the capital.

Income thresholds for Shared Ownership in London have increased

As of 1 April 2015, households earning less than £71,000 per annum can now purchase a share in a one- or two-bedroom property available through Shared Ownership in London.

A share in a London property with three or more bedrooms can now be purchased by households earning less than £85,000 per annum.

This has since changed as of 1 April 2016 so that households earning less than £90,000 per annum can now purchase a share in a home of any size.

A lower income threshold (£80,000) is applicable for developments outside London boroughs.

Does that mean I’m now eligible for Shared Ownership?

Eligibility will vary depending on which development you are looking at purchasing, the property size and whether there are any criteria imposed by the local authority.

But there are some general, over-arching criteria that you must meet for every scheme. Find out more under Am I Eligible?

Find a property

If you meet all of the basic eligibility criteria, your next step is to browse some of the properties we have listed in our Property Search.

From there, you can register your interest for those you are interested in, and we’ll be in touch when the development is ready to launch.

An excerpt that concerns the updated income thresholds, taken from page 90 of the Greater London Authority’s Annual Monitoring Report 11 published in March 2015, is available below:

Intermediate housing

3.37 Paragraph 3.62 of the 2015 London Plan sets out the income thresholds for intermediate housing and states that these will be updated on an annual basis in the London Plan Annual Monitoring Reports. The thresholds are therefore to be updated as follows. Intermediate provision is submarket housing, where costs, including service charges, are above target rents for social rented housing, but where costs, including service charges, are affordable by households on incomes of less than £71,000. This figure has been up-dated from the London Plan (2011) figure of £61,400 on the basis of the latest data (from 2014) on lower quartile house prices in London, and is an increase from the figure of £66,000 in AMR 10.

3.38 In his 2011 replacement London Plan, the Mayor set out a higher intermediate housing income threshold of £74,000 for households with dependents, in order to reflect the higher cost of both developing and buying family-sized homes in London. This figure was derived by uprating the upper income threshold in the Plan (£61,400) by 20%. The upper threshold for intermediate family housing can therefore be updated by adding 20% to the general threshold of £71,000 and rounding for a figure of £85,000. Intermediate housing can include shared ownership, sub-market rent provision (including the new affordable rent product) and market provision, including key worker provision, where this affordability criterion is met and where provision is appropriate to meeting identified requirements.

3.39 For dwellings to be considered affordable, annual housing costs, including mortgage (assuming reasonable interest rates and deposit requirements), rent and service charge, should be no greater than 40% of net household income, based on the household income limits set out above. Further guidance will be provided in the forthcoming Housing SPG.

3.40 Local planning authorities should seek to ensure that intermediate provision provides for households with a range of incomes below the upper limit, and provides a range of dwelling types in terms of a mix of unit sizes (measured by number of bedrooms), and that average housing costs, including service charges, to households for whom intermediate housing is provided are affordable by households on annual incomes of £46,250 pa (i.e. the midpoint of the range between £21,500 (updated from AMR 10 in line with RPI) and £71,000). On this basis, average housing costs, including service charges, would be about £1,079 a month or £249 a week (housing costs at 40% of net income, net income being assumed to be 70% of gross income). This figure could be used for monitoring purposes.

3.41 These intermediate income caps £71,000 for most households increased to £85,000 for families accessing family sided (3 bed or more accommodation) are also applied by the GLA to determine eligibility for GLA funded intermediate products.

To download the full report, please click here:

London Plan Annual Monitoring Report 11, 2013-2014

(link opens as a pdf 7.94MB in size).