Forum Topic

Affordable Homes

Affordable HomesVanessa often asks on posts on this forum what are affordable homes.After going through the process with 3 or 4 Developers/Builders using the government schemes and their own, which work out roughly the same .From a developers website as an example    Am I eligible for shared ownership?Because Shared Ownership schemes receive some government funding, there are a few general restrictions on who can buy through Shared Ownership:– Maximum household income levels are in place to ensure that properties are accessible to applicants who are unable to purchase on the open market:If the property you are applying for is within a London borough the maximum household income is set at £90,000. If the property you are applying for is outside of London the maximum household income is set at £80,000. There are no minimum income thresholds however we will need to check that you’ll be able to afford to purchase your home and that this will remain the case in the longterm. This is done by completing an affordability assessment with one of the independent financial advisors on our panel.This is one of the first step in applying for a shared ownership property. You will need to call them once you have seen a property that you are interested in, they will review your incomings and outgoings with you to ensure that you are financially eligible for the property.After going through the affordability assessment with the Government schemes and the developers own schemes the minimum works out to be Between 45K and 47K per household. This is for paying off your own mortgage for whatever share you have of the property and the rent and maintenance costs of the Company's share. Which can be between £600 to £850 monthly.So what chance does a single person around 25 to 30 earning 18 to 20k a year  get on the property ladder? Even if there are two of them they still don't meet the minimum requirement     

Bernard Allen ● 3103d5 Comments

It's not a housing shortage, it's greed capitalising on a supply and demand basis. They are capitalising on very poor planning laws and policies that have played directly into the developers hands to build the wrong kind of developments.Thus we have the wrong kind of housing in the wrong areas.This was posted elsewhere, makes a lot of sense to me and a lot better than HS2 for the people of the UK"If all the empty habitable dwellings across London were required to be occupied by law, then this would have two benefits. It would bring down rents, by reducing demand and thus creating competition and thus also bring up the standards of rented homes.As developers are only interested in big profits for their investors ( and if you look at some of the backers of many developers, the kind of people involved rather tells on how much of a money making venture this has become.It would be better for the state with local authorities to acquire either by it's own land reserves or by CPO sites and build with a construction only partner, homes that can be sold on long leases but not as traditional council homes. These would be of good quality, desirable but not fully freehold. And what is actually needed, not what developers tell us we (they) need. There would be strings attached to prevent profiteering, sub-letting and alterations.  Any future sale would include an additional levy to the council ( a bit like a football club gets a return from a sold on high flying player or is re-sold for a huge fee later in his career.) Occupants in work and of normal income would be expected to maintain the property if rented or long leased. Those on council rent and low incomes , elderly or disabled, rent in the traditional way. Thus reducing the repairs burden of poor quality and rip offs that bedevil council properties.But most can be sold for a modest profit but all profit returns to the authority developer and is only allowed to go into the next housing project.All almshouses, disabled facilities and special needs homes remain in the authority inventory for those specific needs..By having a mix there will be a social benefit and clearly defined rules on tenancy and leases on anti-social behaviour and civic duty.  In other word what is expected of residents. The same as is found in 'premium developments" but also It's time the whistle was blown on the type of developers and developments who seem to have too much influence on governments and authorities, planning methods need to be pragmatically and systemically overhauled and no longer can this small country, scarred with the results of poor building and developments all this Wild West way of doing things."

Raymond Havelock ● 3096d