Fact sheet 9: What is affordable housing

The document titled “What is Affordable Housing?” provides a clear explanation of affordable housing, its importance, and the various types available in England. Here’s a simplified version:

What is Affordable Housing?

Affordable housing refers to homes that are priced so that people with low to moderate incomes can afford them without spending too much of their income. Generally, a home is considered affordable if it costs less than 30% of a household’s gross income. This allows families to cover other essential expenses like food, clothing, transportation, and healthcare.

Types of Affordable Housing

Affordable housing can come in different forms, including:

• Affordable Housing for Rent: This includes homes rented at least 20% below the local market rent or at rates set between market rents and social rents.
• Affordable Housing for Sale: This includes homes sold at discounted prices, such as:
  • Shared Ownership: Where buyers purchase a share of the home and pay rent on the remaining share.
  • Discounted Homes: Homes sold at least 20% below market value.

Why is Affordable Housing Needed?

Affordable housing is crucial for addressing the housing crisis in England. Many people struggle to find homes they can afford due to rising property prices and rents. This situation affects not just individuals but also communities, as it can lead to increased homelessness and social instability.

Who Can Live in Affordable Housing?

Affordable housing is intended for individuals and families whose needs are not met by the private housing market. This includes:

• Low-income families
• Young professionals
• Elderly individuals
• People with disabilities

How is Affordable Housing Provided?

Local authorities, housing associations, and private developers work together to provide affordable housing. In recent years, many new affordable homes have been delivered through contributions from developers as part of larger residential projects.

Accessing Affordable Housing

Access to affordable housing varies depending on the type of tenure. Local authorities typically manage rental properties and may require applicants to demonstrate a local connection. For example, some may need to have lived in the area for a certain period or have family ties there. Other types of affordable housing, like shared ownership, are generally open to anyone who meets affordability criteria.

Conclusion

In summary, affordable housing plays a vital role in ensuring that everyone has access to safe and secure living conditions. By understanding what affordable housing is and how it works, communities can better advocate for policies that support its development and availability.

Further reading: Evaluating Housing Policies Products of Low cost Housing Programmes for Low-income Civil Servants in Port Harcourt City, Nigeria
What is affordable housing? – About affordable rental housing facs.nsw.gov
Affordable housing – Wikipedia en.wikipedia
What Is Affordable Housing? | Planopedia – Planetizen planetizen