Shared Ownership Affordability: How Much Do You Need to Earn?
Understand affordability checks, minimum income, and eligibility
One of the first questions prospective shared owners ask is: “Can I actually afford this?” Unlike buying on the open market, shared ownership has its own affordability checks run by housing associations. This guide explains exactly how the assessment works and what income you’ll need.
How the Shared Ownership Affordability Assessment Works
When you apply for shared ownership, the housing association carries out an affordability assessment. This is separate from the mortgage lender’s own affordability check — you need to pass both.
The housing association typically uses the Homes England affordability model (or equivalent in Scotland, Wales, and Northern Ireland). The key rule is:
Your total monthly housing costs should not exceed 45% of your net household income.
Total housing costs include:
- Mortgage repayments on the share you’re buying
- Rent on the share you don’t own
- Service charges (maintenance, communal areas, buildings insurance)
Worked Example
Let’s say you’re looking at a £300,000 property and want to buy a 25% share (£75,000):
| Cost | Monthly Amount |
|---|---|
| Mortgage (£67,500 loan at 5.5%, 25 years) | ~£414 |
| Rent (2.75% of £225,000 ÷ 12) | ~£516 |
| Service charge | ~£150 |
| Total monthly housing costs | ~£1,080 |
If the 45% rule applies, you’d need a net monthly household income of at least £2,400, which equates to a gross salary of roughly £33,000–£36,000 depending on your tax situation.
Minimum Income for Shared Ownership
There is no fixed minimum income set by the government. The amount you need depends on:
- Property price — higher-value properties need higher income
- Share percentage — a lower share means lower mortgage but higher rent
- Interest rates — higher rates mean higher monthly mortgage payments
- Service charges — these vary widely between properties
As a rough guide, for shared ownership properties in different regions:
| Region | Typical Property Price | 25% Share | Approximate Minimum Household Income |
|---|---|---|---|
| North of England | £180,000 | £45,000 | ~£22,000 |
| Midlands | £230,000 | £57,500 | ~£27,000 |
| South East | £320,000 | £80,000 | ~£35,000 |
| London | £420,000 | £105,000 | ~£45,000 |
These are estimates — use our shared ownership calculator for a personalised breakdown.
Eligibility Criteria
Beyond affordability, you must meet these eligibility requirements:
England (Homes England rules)
- Household income must be £80,000 or less (£90,000 or less in London)
- You must be a first-time buyer, or a previous homeowner who can no longer afford to buy, or an existing shared owner looking to move
- You must not be able to afford to buy a home suitable for your needs on the open market
- You must be able to demonstrate you can sustain the costs of homeownership
Scotland, Wales, and Northern Ireland
Each nation has its own eligibility rules and income caps — check with your local housing association or the relevant government housing body.
What Debts Affect Your Affordability?
Housing associations look at your net disposable income after essential outgoings. These can include:
- Credit card minimum payments
- Car finance or loans
- Student loan repayments (for some assessments)
- Childcare costs
- Other regular commitments
Reducing your debts before applying can significantly improve your affordability assessment.
How to Check Your Affordability
- Use our shared ownership calculator to estimate your total monthly costs based on a specific property
- Try the advanced calculator for dual-income support and eligibility checks
- Contact housing associations directly — many offer free affordability checks
- Speak to a mortgage broker who specialises in shared ownership
Tips to Improve Your Affordability
- Pay off debts before applying to reduce your outgoings
- Save a larger deposit — this reduces your mortgage and monthly payments
- Consider a higher share — counter-intuitively, a 40% share sometimes costs less monthly than 25% because rent drops more than the mortgage increases
- Look at different areas — property prices vary significantly even within a few miles
- Apply with a partner — joint household income is assessed together
Frequently Asked Questions
How much shared ownership can I afford?
This depends on your household income, existing debts, and the property price. As a general rule, your total housing costs (mortgage + rent + service charge) should be no more than 45% of your net household income. Use our calculator for a personalised estimate.
What is the maximum income for shared ownership?
In England, your household income must be £80,000 or less (£90,000 in London). Income limits differ in Scotland, Wales, and Northern Ireland.
Can I get shared ownership on a single income?
Yes. Many shared owners are single applicants. The affordability assessment is based on household income, which can be just one person’s salary.
Can I get shared ownership if I have debt?
Having debt doesn’t automatically disqualify you, but it reduces the amount the housing association considers you can afford. Paying off debts before applying can help.
Ready to see if shared ownership works for your budget? Try our shared ownership calculator or advanced calculator with built-in eligibility checking.