Affordable housing is often spoken about by politicians of all levels, but what exactly are we talking about? As house prices have risen nationally, and this is acutely the case in South Cambs, it has become increasingly difficult for those on lower incomes to afford a home in our area. There is no one size fits all solution, so a whole range of different types of housing are classed as affordable:
- Social Rented – rent is determined through the national rent regime.
- Affordable Rent – rent can be no more than 80% of local market rent.
- Intermediate Rent – rent set at around 80% of market rate. Often targeted at ‘Key workers’.
- Shared Ownership – purchasers can buy between 25-75% of a home’s value and increase their percentage over time. Rent is then paid on the remaining share. This is for households earning no more than £80,000.
- Fixed Equity – property is sold at a fixed percentage (normally 75%), often helps with older people downsizing.
- Rent to Buy – Rent is around 20% less than market value, but there is an opportunity to buy shares in the home akin to shared ownership. Aimed at those struggling to come up with a deposit to buy.
- Rentplus – a hybrid to allow people to purchase a home with a combination of affordable rent and a 10% gifted deposit. Aimed at those at the start of their careers that aim to own a home as their salaries increase.
- Starter Homes – a 20% discount on properties capped at £250,000 for those aged between 23 and 40.
Your local Conservative elected councilors are working with the national government to ensure that affordable housing policies are at the heart of our local plans for the future development of South Cambs.
