AIBU To not know what ‘affordable’ housing is

[Lollipop30]

...and who exactly can afford it?

I believe it is defined as at least 10% below market value. But still not affordable to many.

I asked that a while ago. Mainly due to "affordable" new builts which are at least twice the price of older houses in the area.

Yes, round here it means 500k for a bog standard 1200 sq ft family home. Not sure who actually finds that affordable...

I believe it is defined as at least 10% below market value. But still not affordable to many.

Ha no one told that to the new developers that banged on about affordable housing and now they're selling (shit) 2 bed flats for 350k.

Affordable usually means 80% of market rent or a “share to buy”/“help to buy” type mortgage where you end up getting a smaller mortgage but have to pay rent as well.

So the developers still get shit loads of profit and there’s the illusion that the government are creating affordable homes.

What, I think, is actually needed are government owned and rented homes which are open to everyone with priority to those in need.

However as most politicians are landlords, they would never allow it as they’d lose money despite already earning enough.

The average market value of a house here is £500k (opposite side of the country to London)
The thought of £450k being deemed affordable is hilarious and horrifying.

Affordable rent (with a capital A) is defined as uptown 80% of market rent inclusive of service charge. The tenancy is fixed term but must be at !east 2 years. Only organisations registered as a social landlord can charge Affordable rent and those organisatios must also have a development programme in place and a signed Framework Development Agreement in place with Homes England - even if the homes are developed without grant subsidy.

Anything else below market value rent is a sub market or intermediate rental product even if it is the same amount of money and may even be called affordable. Little a.

Social rent is set by the Regulator of Social housing and the rent levels are calculated using the target rent formula.

www.mumsnet.com/Talk/am_i_being_unreasonable/3397968--To-ask-what-actually-is-an-affordable-housing

I don't get it either. If bit is cheaper than other houses the same would someone with a lot of money (like one of theee people who have multiple houses to sell and rent) not just buy it and immediately sell it on at same price as other houses in the area?

The Affordable sale products are:
Shared ownership where the home owner initially purchases between 25 and 75. % of the property value and pays between 2& 3% rent on the unbought proportion. They can staircase out by purchasing tranches of 10% or more.
Rent to Buy: Rent is charged at Affordable Rent for 5 years to allow the tenant a financial gap to save for a deposit. After 5 years the tenant has first refusal on purchasing the property.

That’s pretty shocking actually. I assumed it was defined similarly to “essential workers” housing so affordable for nurses police officers etc on their average wage.

Discounted sale / starter homes are protected on the planning permission or title restriction to prevent back to back purchase and resale. Also to purchase one it has to be your only property.

There is also a lot of people in the private sector that get paid less than public sector workers so it would be really unfair to discriminate towards nurses, police etc...

Rentals are assigned via the council's housing list in most cases. There are exceptions but hey are very niche.

"Affordable" 3 bed tiny terraced new built in my area 150-190k. Normal 1930's terraced 3 bed 60-120 (depends on a street. Same house on main street with drive costs 40k more than mine around the corner)

I was reading about one of these nearby and you get the house at a discounted rate say 20% less....but you applied for it through the local council housing ppl and have to prove you couldnt afford to buy one at the usual price.... and when you sell you only sell it for the discounted amount....but there was something about you can only sell to someone else who is eligible for the discount scheme?! Sounds a lot of hard work