Find advice for households or household members who are or could have unmet housing needs on the main options available in terms of new-build affordable housing. However, for general advice on housing issues or homelessness contact the Housing Advice Team.
The District Council enables the development of new affordable housing. The following sections provide a brief guide to the main types of affordable housing we enable (this is, of course, in addition to casual vacancies in the existing stock). Which, if any, of these options is available and most suitable for you will depend on individual circumstances. For this reason it is important that if you cannot afford, or find, housing suitable for your needs within the Council's area, you should contact the Council's Housing Advice Team in the first instance.
1. Housing for rent
This is the most common form of new affordable housing. It is developed and let by Registered Providers such as housing associations.
- Rents are set below market levels in accordance with the requirements of the Regulator of Social Housing.
- You need to be registered on the Council's Home Choice Plus system to apply for these homes.
- Lettings are prioritised to households with an eligible local connection in the first instance.
2. Shared Ownership housing
The main option for low-cost home ownership is known as Shared Ownership housing. This, too, is developed by Registered Providers.
- You buy a share of the initial market value of the property (typically initially 10%-75%) with a mortgage.
- A specified rent is normally paid on the remaining unsold equity, but you have a right to purchase further shares in the value of your home enabling you to ‘staircase' to outright ownership (special restrictions may apply in rural areas).
For more information about buying a shared ownership property, including specialised schemes, for example Home Ownership for People with Long Term Disabilities (HOLD) go to our dedicated webpage.
3. Fixed Equity Sale housing
Occasionally, housing for sale at a permanent discount, known as Fixed Equity Sale homes becomes available. Such homes are sometimes also known as Discounted Market Sale homes.
Homes are advertised on house sale websites such as Rightmove, and with local estate agents – the District Council does not hold a list of available homes, nor is it involved in advertising or selling the homes.
The following is general advice: please note that the District Council cannot provide advice relating to your specific circumstances and you should seek independent legal or valuation advice before buying or selling a property.
- Housebuilders develop and directly sell Fixed Equity Sale homes; Registered Providers are not involved.
- Fixed Equity Sale homes are sold at a specified discount of their open market value (usually 40%, in other words at no more than 60% of their market value).
- The discount is applied in perpetuity, including on subsequent re-sales. There is no rent charged on the remaining unsold equity, and the owner owns 100% of the home, but will be required to re-sell at the same percentage discount.
There are a limited number of such homes in the district. There are specific requirements for the sale and purchase of such properties, including eligibility criteria. The discount and requirements of sale are set out in a S106 legal agreement relevant to the specific development. These need to be carefully read and understood by both sellers and purchasers: the following are general guidelines only.
- Sales are initially limited to purchasers with a qualifying local connection.
- Prospective purchasers are required to have a financial assessment which confirms they could not afford to buy a property at full open market value.
- Occupancy is restricted to use as the purchaser's sole residence: sub-letting is not allowed without the express permission of the District Council.
Valuations
Generally, before a home can be advertised for sale, the developer or current owner is required to submit two valuations to the District Council to confirm the open market value of the home. The agreed maximum selling price will be the average of the two valuations, with the discount (as set out in the S106 agreement) applied.
The application form to submit valuations can be found below:
Please note a fee may be payable when submitting your application.
4. Self-build housing
Self-build housing schemes potentially provide another means of accessing affordable housing for people who might otherwise be unable to buy a suitable home on the open market. Although no affordable homes have been delivered through such schemes to date in our District, some schemes have been successfully developed in other parts of the country. The District Council remains keen to encourage such schemes in the right circumstances.
- There is scope for considerable flexibility over the exact way schemes are organised and the homes designed and built.
- In practice, to ensure schemes are genuinely affordable it may be useful for self-builders to form a co-operative and/or a Registered Provider to be involved (for example, to provide serviced plots).
Further information may be found in the Council's Affordable Housing Standing Advice Note.
5. Find out more
Further information about our work can be found via the links below:
