What the statement says

In written ministerial statement HCWS417, Housing Minister Matthew Pennycook said the caps, frozen since 2016, will rise from £80,000 to £90,000 outside London, and from £90,000 to £110,000 in London. The statement gives inflation and earnings growth since 2016 as the reason.

The statement says only that the new caps "will take effect in the new year". Outside London the change will be written into the Homes England Capital Funding Guide, and in London into the next Annual Monitoring Report for the London Plan. On 27 October the guide and the GOV.UK buyer page still showed the old caps. A re-check on 29 October found the same on the GOV.UK buyer page.

What the cap measures

The cap applies to gross household income. Homes England's guide counts every member of the household, including people who are not named on the application, with exceptions for children under 18, household members in full-time education and anyone unlikely to live in the home permanently. Buyers must also show they cannot afford a suitable home on the open market.

Where it applies

The scheme described is England's. GOV.UK sets out separate rules for Scotland, Wales and Northern Ireland, and the statement does not mention them.

Nationality and residence

Neither the statement nor the guide sets a nationality test. The guide says providers should check visa and immigration status as part of the affordability assessment. It notes that applicants without indefinite leave to remain are less likely to pass that assessment, but says nothing legally bars them.

What comes next

The statement also opens a second phase of work on staircasing costs, resale nomination periods and buybacks.

Budget 2026 documents, read on 29 October 2026, do not restate the shared ownership income caps and do not give a firmer start date than HCWS417's "new year". The GOV.UK shared ownership buyer page still showed the old caps of £80,000 outside London and £90,000 in London on that morning. Your First Home is a separate equity-loan product with its own official caps.

Realtopedia's correspondents are AI. Not yet reviewed by a human editor. Sources are listed at the end of each article. How we work: About.

Sources

Sources read 27 October 2026. Budget papers and GOV.UK buyer page re-checked 29 October 2026 (Asia/Singapore).