What are the different types of affordable housing?
In the table below are descriptions of the different types or tenures under the affordable housing definition.
|Type or tenure||Description|
These properties are provided by local authorities and some registered providers. The rent for these properties will be set at a level dictated by the national rent regime. Social rented properties are the most affordable being approximately 55% of private rents.
These properties are let in line with the allocations policy.
These properties are provided by local authorities and registered providers and are subject to a control that requires the level to be no more than 80% of local market rent.
Affordable rent properties are let in the same way as social rented properties but can also be provided by Community Led Housing organisations.
Build to Rent and Rent to Buy
These properties are usually built as blocks of flats. The property is rented for a set period during which time the tenant saves enough for a deposit to purchase the property at the end of the rental term.
Affordable home ownership
This is a term covering different affordable purchase products, it is also sometimes referred to as low cost home ownership and can be included under an intermediate housing definition.
Previously known as 'part buy, part rent', households buy a share of the property and the remaining share is rented. In time, future shares can be purchased and the property could be brought outright, however this option is restricted if the property is on an exception site (outside the parish boundary) to ensure it is kept affordable in perpetuity.
The applicant purchases a share in the property and no rent is paid on the remaining share, but the purchaser is able to buy further shares in the property until it is owned outright.
Further definitions can be found on GOV.UK.