An estimated 3.3 million prospective homeowners have missed out on the opportunity to own a home since the financial crisis of 2008, according to analysis by Pepper Money.

The specialist mortgage lender suggested that this many households would have been expected to buy a home had pre-crash financial trends continued through the crisis.

These findings were published in a whitepaper commissioned by Pepper Money, titled Shared Ownership – A Vital Bridge to the Housing Market, which was authored by economist Rob Thomas with policy input from David Gauke.

It also suggested that shared ownership is playing a “critical role” in addressing the UK’s housing crisis, as Pepper Money stated it can offer a vital route onto the property ladder for thousands who would have otherwise been priced out.

Intermediary relationship director at Pepper Money, Rob Barnard, 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.”

Pepper Money’s whitepaper estimated that more than 25 lenders now offer shared ownership mortgages, but most focus on mainstream products, which the lender believes is leaving a gap for buyers with more complex financial backgrounds.

Since the COVID pandemic in 2020, a combination of rising living costs, higher interest rates and a more unpredictable financial landscape have made it harder for people to access traditional mortgage lending. Pepper Money suggested this is reflected in a rise in demand for shared ownership mortgages from specialist lenders, with the firm reporting a 21% increase in shared ownership lending over the past year alone.

“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,” Barnard added.

“Shared ownership, by its very nature, serves those who are navigating life’s complications with resilience and ambition.

“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 whitepaper.”

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