Affordable Housing

Contents:

What is affordable housing?

• Social Rented Housing
• Affordable Rented Housing
• Intermediate Housing

How is affordable housing developed?

Who provides affordable housing?

What Government home ownership schemes operate in Broxtowe?

• Discount Market Sale (DMS)
• First Homes Scheme
• Shared Ownership
• Lifetime ISA

What is affordable housing?

Affordable housing is defined as social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not being met by the current market. Eligibility is determined with regard to local incomes and house prices.

Social Rented Housing

Social rented homes are owned by either local authorities or registered providers of affordable housing (RPs). These organisations charge a rent which is set by government guidelines through the national rent regime.

These rents are typically quite low and are generally affordable to the majority of people.

Eligible households are those that can demonstrate that they are a British citizen or a citizen of another country with the right to stay in the UK.

The majority of occupants will either be earning a low wage or have a low household income, tending to receive assistance from housing benefit/Universal Credit.

You can apply for Social Housing at Broxtowe Borough Council by visiting Homechoice 

Affordable Rented Housing

Affordable rent is subject to rent controls that require a rent of no more than 80% of the local market rent (including service charges, where applicable). As local market rents vary from place to place, these are measured by the amount of local housing allowance administered in a particular area.

The same eligibility requirements as above would apply.

Intermediate Housing

Intermediate housing describes a range of homes for sale and rent provided at a cost above social rent, but below private rent. It is targeted at people who have little chance of accessing low cost rent housing, but who are not able to afford to rent or buy a home on the open market. This includes shared ownership.

Intermediate rent homes are usually let on an assured shorthold tenancy for between one to five years, and can be renewed.

These properties are usually built by local authorities or registered providers.

How is affordable housing developed?

The Council’s Local Plan (Opens in a New Window) requires developers to provide a percentage of the homes they build to be affordable. This varies by area, and developments of 10 or more units must have between 10-30% affordable homes.

If this is not practical, the developer can make an off-site contribution. This only happens in exceptional circumstances.

Who provides affordable housing?

Broxtowe Borough Council manages approximately 4300 properties and 320 leasehold properties.

There are a number of registered housing providers (Housing Assocations) operating within the Borough.

The following are regulated by the Regulator of Social Housing (Opens in a New Window)

What Government homeownership schemes operate within Broxtowe?

If you are unable to afford to buy a home outright, there are a number of schemes available to help.

Discount Market Sale 

Discount Market Sale is an affordable home ownership product which allows first time buyers to get onto the property ladder by enabling them to buy a home at a discounted price. This is usually 20% less than the market value.

The homeowner is not required to pay back the discount, but the discount remains with the property on all future sales.

To qualify:

• You must have a household income of less than £80,000
• You must have a local connection to Broxtowe Borough
• You have a right of residence in the UK
• You cannot afford all of the deposit and mortgage payments for a home that meets your needs

Broxtowe Borough Council are have recently worked in partnership with David Wilson Homes on delivering Discount Market Sale properties at the Old Mill Farm site on Cordy Lane, Brinsley.

Further schemes will be available shortly

First Homes Scheme

The First Homes Scheme is the Government’s preferred discount market tenure, and should account for 25% of all affordable housing units delivered by developers through planning obligations.

First Homes are new build properties that are sold with a minimum of 30% discount of the market value.

Similar to the Discount Market Sale (DMS) properties, applicants must have a local connection but struggle to purchase a home at the market price. Priority is given to first time buyers, serving members and veterans of the Armed Forces and key workers such as those who work in the NHS and teachers.

Once the discount is taken into account, the sale price cannot exceed £250,000.

The discount is passed on to future buyers of the property.

Broxtowe Borough Council are currently working in partnership with Keepmoat Homes on delivering First Homes properties at the Sherwin Gardens site in Bramcote. To qualify, you must have a household income of £60,000 or less. For further information, visit:  Sherwin Gardens Bramcote (Opens in a New Window) 

Shared Ownership

Shared Ownership gives first time buyers the option to buy a share of their home (between 10% and 75%) and pay rent on the remaining share.

Further shares in the property can be purchased, as and when the homeowner can afford to do so. These properties are always leasehold until they are fully purchased. 

The Council have built 4 new Shared Ownership properties on the Field Farm site in Stapleford. If you would like to register your interest in future Shared Ownership properties being built by the Council or for further information, contact the Council’s Homeownership team - homeownership@broxtowe.gov.uk (0115 9173935).

Visit this website for further information on Shared Ownership (Opens in a New Window)

Lifetime ISA

The Lifetime ISA was launched on 6 April 2017 to help young people save flexibly for the long term towards a first home and retirement at the same time. Adults aged under 40 will be able to open and save up to £4,000 each year into a Lifetime ISA and receive a 25% government bonus paid monthly.

Individuals will be able to contribute to their Lifetime ISA and receive an annual government bonus on their contributions up to the age of 50. Savings invested in a Lifetime ISA can be withdrawn after age 60, or at an earlier age if they are being used to buy an individual’s first home worth up to £450,000 in the UK.

More information can be found on the Lifetime ISA website.

For more information on the range of Government initiatives on owning your own home, visit Own Your Home (Opens in a New Window) and the GOV.UK affordable home ownership scheme pages (Opens in a New Window)

Contact details – strategichousing@broxtowe.gov.uk 01159173935