Homes England has this month (February 2026) published updates to the Capital Funding Guide (CFG). On the face of it, these changes look procedural but in practice the changes will impact tenure, eligibility assessments and resales, and those delivering affordable housing through Homes England’s programmes will want to understand and reflect them in their processes.
Shared Ownership and ASTs
The Renters’ Rights Act 2025 has brought substantial changes to the private rented sector. Most of these changes will not affect Shared Ownership properties however there is one main change that will. As of 27 December 2025, any long leasehold property (of over 21 years), including Shared Ownership properties, are now excluded from the assured tenancy regime, meaning Share Ownership properties are now more secure. Shared Ownership sits within the wider exclusion of tenancies granted for a term of more than 21 years. The CFG has simply been updated to reflect this.
RPs need to review their standard documentation, internal guidance and any advice given to applicants to ensure this all aligns with the new legal position.
Affordability Assessments
The CFG has been expanded to provide more clarity around how household income and assets are assessed. It now gives more examples of income sources which may be excluded from calculations and clarifies how to approach known or anticipated future changes to a household’s income. The extra detail should support more consistent decision-making and reduce ambiguity when assessing eligibility.
Registered Proprietor’s need to ensure their assessments are carried out in accordance with the CFG and ensure careful documentation of rationale where discretion is exercised and to ensure the assessments are fair and more consistent.
Rent Calculation
The CFG now includes clearer guidance on how to calculate the rent for resales as a percentage of the unsold equity. This should be included in the “Key information about the Shared Ownership home” document (aka KIDs).
While this may seem minor, transparency in the KID is critical. Getting the rent calculation right ensures prospective purchasers have a clear and accurate picture of their ongoing financial commitment.
Overall, this update is about tightening clarity – legally, procedurally and operationally.
If you’re a Registered Provider, solicitor, sales team member or development colleague involved in Shared Ownership, now is a good time to:
- Review internal policies and templates
- Update training materials
- Brief frontline teams on the changes
As ever with the Capital Funding Guide, the detail matters. Get in touch with our specialist Social Housing team for any advice or assistance.
This article was co-written by Anna Foster, associate in our Social Housing team, and Tara Hawthorn, solicitor in our Property Litigation team.