Flat shared ownership & SET(M). Problem?

I am a British citizen married to someone on FLR(M). We currently live in private rented accommodation but are in the process of buying a part-ownership flat.

The housing association rules are that only residents or those with indefinite leave to remain can apply, so only I am applying and that application has been successful. The reason for the restriction is because the rent component of the part-buy part-rent is subsidised by the government. The housing agency don't see a problem with that as it is only me paying the rent/mortgage even though my wife is living with me.

However, the SET(M) form asks for the following...
"Evidence of your finances. Bank statements, building society savings book(s), pay slips or other formal documents as evidence of your and your partner’s ability to maintain and accommodate yourself and any dependants without recourse to public funds (see Note 7)."

This seems to imply that if me buying/renting this flat is government subsidised, and I am therefor living with recourse to public funds, that the SET(M) application may be unsuccessful because the no-public-funds restriction seems to apply to BOTH of us. Is this likely to be the case? Or am I worrying unnecessarily?

I think you should be alright.I dont this would be classified as public funds.

If you were claiming full rent or Council Tax,then these are classified as pubic funds.

If you are paying some rent, just send a copy of your tennacy agreement, along with bank statements, payslips etc as well other documents required stated in the form along with the application form,and your wife should hopefully get permanant stay.

Thanks for the reply. This is similar to what the flat vendor was saying. Will just check with the solicitor to be sure then hopefully it's panic over.

This seems to imply that if me buying/renting this flat is government subsidised, and I am therefor living with recourse to public funds, that the SET(M) application may be unsuccessful because the no-public-funds restriction seems to apply to BOTH of us. Is this likely to be the case? Or am I worrying unnecessarily?

That is not correct. You are British and therefore perfectly entitled to claim whatever Public Funds your circumstances dictate you are entitled to. Some benefits are caught by para 6A of the Immigration Rules, which prevents you getting more Public Funds because your spouse is living with you, but that is the extent of the limitation on you.

You also need to appreciate that the definition of Public Funds, in para 6 of the Immigration Rules, does not attempt to cover every sort of benefit paid by the UK Government.