Affordable housing is available to households who otherwise could not house themselves, for example, because they would struggle to afford the cost of housing in the open market, or they need a specific type of house which is not commonly available.
This will ensure local people from first-time buyers to families, can access high-quality housing, helping more residents stay close to the community they know and love.
Types of affordable housing can include:
First Homes Scheme
A Government-backed scheme designed to help first time buyers own their own home in England. Under the scheme, new homes are offered for sale with a discount of at least 30% of market value.
Discount Market Sale (DMS)
20% to 50% below the open market value. Unlike shared ownership, you own 100% of the property from day one with no rent to pay on the remaining share.
Shared Ownership
Shared ownership housing is provided through a Registered Housing Association and helps households who can afford a small mortgage, but that are not able to afford to buy a property outright.
It enables purchasers to buy a share between 10% and 75% of the home’s full market value and then pay rent to the landlord for the share they own.
Social Rented Housing
Housing owned by local authorities and Registered Providers, for which guideline target rents are determined through the national rent regime. The rent is calculated using a set formula that takes into account the value of the property, the average earnings in the area and the number of bedrooms.
Social Rented properties are the most affordable tenure type, typically around 60% of an open market rent. Housing Benefit is available to qualifying households where they are unable to pay their Social Rent.
Affordable Rent (Or intermediate rent)
Let by Local Authorities or Registered Providers to households who are eligible for Social Rented housing. Affordable Rent is subject to rent controls that require a rent of no more than 80% of the local market rent.
Rent to Buy
Means you rent a newly built home at approximately 20% below the market rate for up to five years (exact period of time varies by property). During that time period, you have the option to buy the property or to buy part of the property under a Shared Ownership scheme. When you get to the end of the time period, you either have to buy part of the property or move out.