Affordable HousingAffordable Housing

Government policy requires new residential housing developments, throughout England and Wales, to make a contribution to the provision of affordable housing. This policy generally applies to all new developments of 15 or more dwellings in main towns. In smaller towns or villages the trigger point for the provision will normally be lower than 15, but varies significantly between different districts according to the Local Authorities perceived level of need.

The provision of affordable housing on individual schemes is secured within the planning process by way of legal agreements, between the land owner/developer and the Local Authority, known as Section 106 Agreements.

Affordable housing may comprise a combination of different tenures, e.g:-

• a) Housing for rent via Registered Social Landlords, usually Housing Associations (R.S.Ls) at subsidised sub-market rents.
• b) Shared ownership schemes, frequently via R.S.Ls. Where the purchaser will buy a percentage share of the property and pay a subsidised rent on the retained equity interest.
• c) Intermediate housing, or sub-market sales, where local qualifying purchasers may purchase the freehold or leasehold of a new dwelling, at a price representing a substantial discount on the open market value of the property.

Affordable housing available via the New Homes Company, acting as Selling Agents for developer clients, will normally be the intermediate housing type and will include houses and flats. Houses tend to be sold freehold, and flats are sold on a long leasehold basis.

Local Authorities will determine the qualifying criteria for prospective purchasers of the affordable housing, in line with their current policy. The policy has the purpose of seeking to restrict the purchase of price discounted new affordable homes to persons who have a genuine local connection, who are in housing need and cannot afford to purchase a home at open market values.

An example of the qualifying criteria which is typical of Local Authorities is set out below and this example relates specifically to Kerrier District Council.

To qualify as a prospective purchaser of an affordable home in the main towns of Camborne/Redruth the purchaser should:

• a) In the opinion of Kerrier District Council be in housing need.
• b) Be a first-time buyer, although in exceptional circumstances persons who have previously owned a property may be considered.

Additionally the purchaser must meet one of the following criteria: -

• c) Be currently employed within the Kerrier District.
• d) Have been resident in the Kerrier District for a minimum period of 5 years.
• e) Been born within the Kerrier District and educated whilst under the age of 18 years within Kerrier District.
• f) Be a key worker where the person may be considered even if they do not meet any of the other qualifying criteria.

The above is a general guide to the principle of affordable housing, but should you require specific information on any particular development please contact The New Homes Company on 01209 313323 or the relevant District Council.