| Directorate: | Customer Operations |
| Policy Statement Owner: | Head of Leasehold & Service Charge Operations |
| Operational Policy Statement Owner: | Resale & Staircasing Manager |
| Date Published: | May 2026 |
| Next Review Date: | May 2029 |
| Policy signed off by: | Customer Operations Leadership Team |
| Policy and Compliance Business Partner: | Policy & Compliance Advisor |
| Policy Risk Rating: | B |
| Regulatory Code/Legislation and National Standards: | See Section 3 |
| Publicising the Policy Statement: | This policy statement will be published in the Homeownership Policy Toolkit – Shared Ownership and Rent to Buy (RTB) on the Policy pages on Hyve.
Any changes to this policy statement will be notified to our staff and other relevant stakeholders using a variety of communication tools including:
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1 Introduction and Scope
1.1 Shared ownership is an affordable home ownership option for people who cannot buy on the open market. As it is typically government funded, Hyde must follow Homes England’s Capital Funding Guide to ensure homes are allocated fairly and transparently.
1.2 A shared ownership resale home is an existing property first purchased through the shared ownership scheme and now being sold by its current owner. This policy explains who can buy a resale home from Hyde, how we assess affordability, and how we ensure resale allocations are fair and transparent.
1.3 This policy aims to ensure that:
- Resale homes are allocated to people who meet the required eligibility criteria and can afford to sustain home ownership
- Our allocation process is fair, transparent and complies with all legal and regulatory requirements
1.4 This policy applies to all resale homes owned or managed by Hyde. It does not apply to newbuild shared ownership homes, outright sales or shared ownership staircasing. Refer to the separate Staircasing Policy Statement.
1.5 Anyone interested in purchasing a resale home must submit an application through the Hyde New Homes website at www.hydenewhomes.co.uk.
1.6 All applications are assessed impartially and consistently. Applicants must meet the eligibility criteria, and homes are allocated in accordance with government guidance.
2 Eligibility
2.1 Eligibility criteria may vary depending on the location and the local authority.
2.2 To be eligible to purchase a resale home from Hyde, an applicant must:
- Be at least 18 years of age
- Be unable to afford to buy a home on the open market
- Not exceed the maximum full household income threshold (£80,000 per year outside London; £90,000 per year in London)
- Pass money laundering and fraud checks
2.3 If the applicant already owns or part‑owns a home in the UK or abroad, they may still qualify for shared ownership, but they must sell that property before completing the purchase of the new one. They must also provide proof of the sale and the proceeds.
2.4 For specific developments, income thresholds and eligibility requirements may be different than the above.
3 Assessing Affordability
3.1 We follow Homes England guidelines to ensure applicants can afford a shared ownership home without overstretching themselves financially.
Initial Affordability Assessment
3.2 All applicants must complete an affordability assessment with an independent mortgage broker from Hyde’s external panel before a home can be allocated and the offer process can begin.
3.3 Shared ownership mortgages are specialised, so Hyde works with brokers who have the appropriate qualifications and experience. The affordability assessment is free and confirms whether the home is affordable for the applicant. There is no obligation to arrange a mortgage with the broker who completes the assessment.
Adverse Credit Check
3.4 As part of the initial affordability assessment, the specialist mortgage adviser from Hyde’s external panel must review whether the applicant has any adverse credit that could affect their suitability for shared ownership. This review is based on standard lender requirements for a clean credit history and may include, but is not limited to, the following checks.
- Missed mortgage or rent payments
- Credit defaults within the past 12 months
- County Court Judgements (CCJs); eligibility is not affected if the applicant can provide documentation to show the default has been satisfied
- Individual Voluntary Arrangements (IVAs) discharged more than three years before the check, provided there is proof of no outstanding debt or credit issues
- Repossessions more than three years before the check, with evidence of no remaining debt or credit issues
3.5 We reserve the right to decline applications based on adverse credit history.
Second Stage Affordability Assessment
3.6 Once an applicant receives an offer for a shared ownership home, they must complete a second‑stage affordability assessment. This assessment provides a detailed review of their finances. The independent mortgage adviser from Hyde’s external panel will work through a budget planner with the applicant to assess income and expenditure. The applicant must provide financial information and documents, including (but not limited to):
- Passport (if held)
- Three months of recent payslips (if employed)
- Three years of tax calculations/SA302s and tax year overviews (if self‑employed)
- Evidence of any additional income (e.g., tax credits, second job, pension income)
- Three months of recent bank statements
- Proof of address (e.g., full UK driving licence, bank statement, utility bill)
- Most recent P60
- Gift letter for any gifted savings
- Marriage certificate (if applicable)
- Council tax bill (if applicable)
- Credit report from Experian or Equifax
3.7 The assessment will also ensure that:
- Mortgage repayments must not exceed 30% of the applicant’s net income after accounting for firm financial commitments, including the rent and service charge payable on the new home*
- At least 10% of income remains after all expenditure
- Income is sustainable long‑term
- The applicant can afford potential rent increases over the next five years
*In London, applicants cannot proceed if housing costs exceed 45% or fall below 25% of household income.
3.8 Mortgage lenders must be mainstream shared ownership providers. Applications using adverse‑credit lenders may be declined.
4 Cash Buyers
4.1 If an applicant wishes to buy a shared ownership home without a mortgage, they must still complete the second‑stage affordability assessment.
4.2 Cash purchases outside London will only be considered if the applicant is unable to obtain a mortgage due to age, religion, disability or income.
4.3 In London, cash buyers will only be approved in exceptional circumstances and require authorisation from the Greater London Authority (GLA).
5 Allocating Homes
5.1 When an existing shared owner sells their home, Hyde allocates the resale property to a buyer who meets the eligibility and affordability criteria and is able to progress quickly to legal instruction.
5.2 Resale homes outside London are allocated on a first‑come, first‑served basis to applicants who meet the eligibility and affordability criteria. “First‑come, first‑served” is determined by the date Hyde receives a qualifying affordability assessment from an independent financial adviser.
5.3 When considering an offer, Hyde will also assess:
- The applicant’s ability to proceed within an agreed timescale
- The complexity of any related chain
- The applicant’s readiness to move to reservation and legal instruction
Local Connection and Priority Groups
5.4 If a resale property is subject to local connection requirements or priority groups set by Homes England, a local authority, or funding conditions, these requirements take precedence.
5.5 Applicants will be informed of any such criteria in advance and must confirm they meet them as part of the eligibility process.
Fairness and Transparency
5.6 All decisions about nominating a purchaser for a resale home will be:
- Applied consistently
- Properly documented
- Made in line with Hyde’s obligations under the Capital Funding Guide and any relevant funding or planning requirements
6 Monitoring, Review and Evaluation
6.1 We monitor key performance indicators at group, directorate and team levels.
6.2 This policy will be reviewed as a minimum every three years to ensure that it continues to meet the stated objectives and takes account of good practice developments unless legislation, business or sector developments require otherwise.
6.3 Risk A policy statements and procedures will also be subject to an annual health check to ensure it continues to remain compliant and procedures reflect current ways of working.
6.4 All policies and procedures may be subject to a Policy STAR self-assessment.
7 Equality, Diversity and Inclusion
7.1 Hyde is committed to valuing and promoting equality and diversity. We recognise our duty to eliminate unfair treatment and discrimination in the services we provide and to promote and value respect in everything we do. We expect our staff to share these values and treat all customers with fairness and respect.
7.2 We can make this policy available in an accessible format on request. We can also offer interpreting services for applicants.
7.3 Throughout this policy we have clearly set out eligibility, affordability, and prioritisation, and explained how we take particular circumstances into account, including where we can consider some situations case by case.
8 Communication
8.1 This policy will be published on our website.
8.2 This policy should be used in conjunction with the following documents:
- Homes England Capital Funding Guide
- Greater London Authority (GLA) Capital Funding Guide
8.3 Hyde reserves the right to decline any application if the applicant fails to disclose essential information, resulting in non-compliance with the Capital Funding Guide.
8.4 The table below outlines the stages of shared ownership allocation and assessment, indicating which organisation Homes England considers responsible for handling queries and complaints.
| Application/assessment element | Responsible organisation |
| Applicant eligibility/prioritisation | Hyde |
| Financial assessment and affordability | Mortgage broker / advisor (on behalf of the Shared Ownership Provider) |
| Decision to accept or decline an application and at what share level | Hyde |
| Application of specific policies | Hyde |
| Mortgage advice (if requested) | Mortgage broker / advisor (acting under their own FCA regulation) |
| Complaints regarding application or share decisions | Hyde |
| Complaints regarding mortgage advice | Mortgage broker’s / advisor’s own complaint procedure |
8.5 Complaints managed by Hyde will follow our Complaints Policy and process.
8.6 For further information contact Hyde on 0345 606 1221.
Version History
| Version no. 1.0 | Effective date: May 2026 |
| Full/partial review/new policy: | New policy created to meet updated Homes England requirements and published on Hyde’s website, setting out Hyde’s approach to allocating and assessing affordability for shared ownership resale homes. |
| Brief summary of changes: | Not applicable |
| Staff consultation:(teams): | Sales, Marketing, Capital Partnerships, Home Ownership Team |
| Resident consultation Y/N: | Not applicable |
| Signed off by: | Customer Operations Leadership Team |
| Date Published: | May 2026 |
| Policy Statement Author: | Resale & Staircasing Manager |
| Policy Statement Owner: | Head of Leasehold & Service Charge Operations |
| Operational Owner: | Resale & Staircasing Manager |