What affordable homes means to you

Successive governments place a high priority on sorting out the UK’s housing shortage in their manifestos prior to election. 

Some attempt to implement some sort of legislation – often covering planning options and where housing can be built, sometimes looking at redevelopment of brownfield sites and the more run-down areas of towns and cities, usually coming up short on their promises because of the difficulties in getting from the planning stage to having people move in.

Of course, there is the social problem too that there simply aren’t the funds in most people’s budgets to buy a lot of the housing that is available on the market.

The Government usually makes provision for what is known as ‘affordable housing’ – this is the term that has been coined where housing is made available to those with a household income at or below a specific amount as tabulated by a recognised housing affordability index. 

Specifically, the UK Government’s standard definition of affordable housing is any property that is available for purchase at 20% below the market value (which includes both properties for rental and for sale). The authorities also provide statistics on its supply.

What are the current plans for affordable housing?

The Government is keen to tackle the supply shortage of housing in England. 

Homes England, the Government’s housing and regeneration agency, is tasked with coming up with a strategy for solving the housing crisis, including provision for further rental and private properties under the affordable housing umbrella.

In June 2023, Homes England reported a boost for estate regeneration with major change to the Affordable Homes Programme. This means that grants can be awarded to fund replacement homes as well as the purchase of new ones. The practical outcome of implementing this strategy is that Homes England can replace outdated housing that is no longer fit for purpose with new, more energy-efficient and affordable homes.

Applying for affordable housing

There are different schemes available to help with the purchase or rent of affordable housing, but, generally speaking, the following rules are applied:

• The gross income for the household should not be more than £80,000
• You need proof that you are unable to purchase a home at the market price in your immediate local area
• You must demonstrate that you have strong ties to the area local to where you want a property, ideally having lived in the region for five years or more

There are a few schemes operated by the UK Government:

• Buying a home through shared ownership (operating across the UK)
• Using a loan to help with the cost of building a home or hiring someone to build one (in England, Scotland and Wales but not Northern Ireland)
• Taking out a loan to help with the cost of a new-build home if you’re a first-time buyer (in Wales only)
• Signing up to the First Homes scheme, which is for first-time buyers (in England only)

If you fall in the category of eligibility for affordable housing, it’s worth contacting your local authority for more information. The council will need involvement in your application for any scheme.

Your conveyancing solicitor should also be in a good position to advise you on the rules of eligibility and whether there are any appropriate schemes that might be running to help you with purchasing or renting a home without having to fork out a lot of money unnecessarily.