The planning process can deliver affordable homes in a number of forms. The most common forms are described below:
Low Cost Home Ownership
These are properties sold at a discount to full market price. The discount applied is decided by information taken from households who live in the parish and are in housing need. Recent schemes have had a 40% discount applied. The houses are then sold as any market housing but with the discount applied and the condition that only local households are eligible. All future sales will have the same discount.
Affordable Homes for Shared Ownership
These schemes, delivered in partnership with a registered social landlord or similar, allow payments to be split between mortgage and rent. The percentage share of ownership will vary depending on the individual circumstances of the person or household in housing need. The household can gradually increase their % share to move towards outright ownership. In settlements of less than 3000 population, owners on a shared ownership model can only obtain a maximum 80% share as they do not have the legal right to increase to 100% ownership. The property will therefore remain a shared ownership property for future occupiers.
Affordable Homes for Rent
In certain circumstances a developer (non social housing landlords) may make properties available for rent at a rent level in line with the local housing allowance. The Council will control the level of rent that can be charged and set eligibility criteria to ensure that properties are allocated to local people in housing need usually through the use of a Section 106 Agreement in conjunction with the grant of Planning permission. See an example of a Section 106 Agreement.
This option gives people that would ultimately like to buy, the chance to try the property for up to a maximum of three years. Any interested parties must have the financial means to purchase within a three year period. An assured short hold tenancy will be issued and a monthly rent, below the market rent and a service charge will be payable.
To register for affordable housing schemes please contact Plumlife on 0161 447 5050. For further information download the Plumlife New Build Homebuy Leaflet.