Affordable Housing can be for sale or rent, for those whose needs are not met by the market. Affordable Housing can be any of the following:
Affordable housing for rent: can be social rent, affordable rent or at least 20% below local market rents. The property is usually owned by a Registered Provider (otherwise known as a Housing Association).
First homes: new dwellings available to purchase by qualifying first-time buyers, first homes are to be sold at a discount of at least 20% of the market value.
Discounted market sale housing: is that sold at a discount of at least 20% below local market value. Eligibility is determined through local incomes and local house prices. Provisions should be in place to ensure housing remains at a discount for future eligible households.
Rent to buy: home are initially rented at less than market rent (usually 20%) for up to five years; before the end of this period the home must be purchased usually through shared ownership. There are rules about what happens when the property is sold, including the need to ensure that the property remains as affordable housing and future occupants also have a local connection.
Why is affordable housing needed?
As we know, rural affordable homes are needed because of the current high house prices and low to medium incomes, resulting in many households having to move away from their communities. This can have a detrimental impact on essential services and facilities, including falling school numbers, and shop and post office closures.
Who would be able to occupy such housing?
Anyone could apply if they meet the local connection criteria and have a combined household income and/or savings below £80,000. You will not be eligible for affordable housing if you can afford to purchase a property on the open market and you cannot own a home when you apply for an affordable property. Some examples of those who may be eligible to apply could be:
Retired people looking for single storey accommodation, i.e. bungalows
A single person wishing to set up home independently
A single person needing to move because of a relationship breakdown
Couples with or without children (this is not dependent on the age of the couple or children)
Families
People currently living in tied accommodation linked to their job but seeking a secure tenancy
Those with affordability issues or continuous six-month tenancy agreements seeking a more secure tenancy
People employed within the parish who commute there to work.
Who should complete the housing needs survey?
The survey should be completed by each separate household that needs or may require alternative housing soon. For example: A family with grown up children living with them may require two or more home in the future. If parents want a home for themselves, they should complete one form and if adult children want their own home, they should complete a form for each of them or one form if they want to share a home.
I am considering selling my property – am I eligible for affordable housing?
Affordable housing is not a solution if you wish to sell a property, for example to downsize, if, when the property is sold, you are able to buy something smaller outright or with a mortgage.
For any additional questions not covered above, please reach out to our Rural Housing Enabler Service team.
