Affordable Housing

WHAT IS AFFORDABLE HOUSING?

When we talk about affordable housing, we mean housing that can either be bought or rented for less money than it would cost on the open market.

Affordable housing is only available for households whose incomes are not sufficient to be able to buy or rent a home on the open market (these households are known as eligible households). It is, of course, important that affordable housing is provided at a price which eligible households can afford and this is determined with regard to local incomes and local house prices.

Affordable homes also have to remain affordable for future eligible households (in perpetuity). So if an affordable house is sold then the money from the sale has to be reinvested towards new affordable housing provision.

Affordable housing consists of two types or tenures of housing; social rented and intermediate housing.

Social Rented Affordable Housing

Social rented housing includes Local Authority Council Housing as well as housing which is rented from Housing Associations. The rent charge is controlled by the National Rent Regime to ensure that is it kept affordable to people on lower incomes.

Intermediate Affordable Housing

Intermediate affordable housing is housing at prices and rents in between those of social rented housing and

market housing which meet the criteria for affordable housing. This includes affordable homes for rent or sale

such as shared ownership. Shared ownership allows a share of a property to be purchased with the owner paying rent on the unpurchased part (outstanding equity).