What is the criteria for affordable housing?
If you’re on the hunt for a new home, you might have seen or heard the phrase ‘affordable housing’. This term refers to a wide range of government initiatives, designed to help low-income and first-time buyers get on the property ladder.
Below, we’ll explain what affordable housing is in a little more detail and help you understand whether you are eligible.
What is affordable housing?
Affordable housing is a collection of schemes that make renting or owning a property more affordable and accessible. The schemes include:
- Intermediate Rent: Properties are available to rent up to 80% of market rent.
- Shared Ownership: Buyers can purchase a share (between 25% and 75%) in a new build or resale property.
- First Homes: First-time buyers can buy a new build for 30% to 50% less than market value.
Affordable housing schemes vary depending on the area you live in. You will need to check the initiatives available in your area by visiting your local council’s website.
Am I eligible for affordable housing?
The criteria for affordable housing changes slightly depending on the scheme you are interested in and the borough you live in. Generally speaking, though, there are a few rules that apply across the board:
- Your total household gross income must be less than £80,000.
- You cannot purchase a home at market price in your local area.
- You must demonstrate that you have strong local ties to your area. Ideally, you will have lived there for at least five years.
Start your property journey today!
If you’re interested in purchasing a property through one of the affordable housing initiatives, we can help. Our experienced conveyancers have in-depth knowledge of the government’s home ownership schemes. Let us help you take your first step onto the property ladder.