Affordable homes
With property prices rising faster than wages, affordable housing has become a hot topic.
But what does “affordable” actually mean?
The Government defines affordable housing as “social rented, affordable rented and intermediate housing, provided to specified eligible households whose needs are not met by the market”.
In theory, this refers to properties that are offered for sale or rent for below their market value – usually as part of a scheme backed by the Government or the local council.
In the case of our affordable homes, those sold on a Shared Equity basis will be offered at 75% of market value, with the CLT retaining the remaining 25%. Rental prices will be set at the Local Housing Allowance, as defined by the Government.
These are protected by a legal ‘asset lock’.
This means they remain affordable for generations to come and can’t be sold on for profit.
CLT housing is made possible through an initial subsidy in one form or another; be it free land, or financial grants from the Government, charities or benefactors.
This means we can afford to reduce prices to meet the needs of local people.
In short, CLT housing schemes empower people, enrich local communities and improve the lives of residents.
They can breathe new life into a village by offering well designed homes below market rate to families that are priced out of the area they live and work in.
