2018 has so far seen a rise in property prices meaning affordable housing is at the forefront of many discussions. But what exactly is it?
As defined by the government affordable housing “is social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market.” Affordable housing must be provided “at a level at which the mortgage payments on the property should be more than would be paid in rent on council housing, but below level markets.”
Eligibility is determined with regard to local incomes and local house prices and it is required that affordable housing remains at an affordable price for future eligible households. “Affordable rented housing is let by local authorities or private registered providers of social housing to households who are eligible for social rented housing.”