Building affordable houses in the right places
Applying for affordable homeownership
Affordable Housing schemes
The role of the Rural Housing Enabler
Building affordable houses in the right places
Affordable housing is much needed within East Lindsey, as house prices continue to rise whilst wage levels remain steady. The following table shows you how the situation has become much worse over the last few years.
| Average Weekly Earnings | Average Yearly Earnings | Average property prices (terraced property) Oct-Dec | 3.5 times yearly income | Ratio (average terraced property price versus average yearly earnings) |
| 2000 | £323.85 | £16,840.20 | £47,986 | £58,940 | 2.84 |
| 2001 | £350.42 | £18,221.84 | £52,715 | £63,776.44 | 2.89 |
| 2002 | £377.07 | £19,607.64 | £63,372 | £68,626.74 | 3.23 |
| 2003 | £365.90 | £19,026.80 | £83,241 | £66,593.80 | 4.37 |
| 2004 (est) | £365.80 | £19,026.80 | £97,793 | £66,593.80 | 5.13 |
Source: Full time employees on adult rates – average gross weekly earnings (New Earnings Survey 2003)
Source: Average property prices – H.M. Land Registry
Affordability is taken at 3.5 annual income.
Latest information taken from the Land Registry for the period of April-June 2004 shows the average price for a terraced property in East Lindsey as £97793. Average earnings for 2004 are currently not available, but compared to the 2003 figure the ratio for average terraced property price to average earnings would be 5.13.
For more information on the prices within Lincolnshire, please visit the Lincolnshire Research Observatory
The influence of Planning for Affordable Housing
Since the mid-1990s, government policy has regarded the need for affordable housing as a material consideration for planning authorities when considering applications for planning permission for residential development. If there are identified needs in local areas, planning policies are incorporated in development plans and if suitable sites are available, these authorities can require an element of affordable housing in all larger residential developments, using Section 106 agreements. Planning authorities may also choose to allow additional developments in rural areas so long as these 'rural exception sites' provide only affordable housing.
Although there are only a few housing sites available in our small towns and villages, it is possible to build if a clear local housing need is established. Exceptions can be made to the normal village or town development boundary.
The planning conditions (section 106 agreements) of any exception site will be that local people are housed in the properties built in perpetuity.
The situation within East Lindsey
High demand and low supply has made it difficult to find housing for sale at all. The demand for rental units has made it attractive for landlords to increase the rent to match the “market rate”
Housing stock is ageing and costs are high to bring them up to reasonable standards.
Shortages of skilled tradesmen means that they can charge very high prices to carry out the works required. This makes it more difficult to recoup costs with a reasonable rental charge.
Planning conditions require that new social housing in villages to be used to alleviate local needs. While restrictions on occupancy may be popular with local people, they create a degree of inflexibility for housing associations in finding tenants and have the potential to deter private investors.
Who is affected?
Low and medium income families, such as those on the minimum wage or low service trades have increasingly struggled, those who are working and their salaries cannot match the house prices, even within the private rented sector, where prices have also soared.
There are significant costs associated with house buying, which can reflect the financial commitment of the owner. Saving for a deposit is not easy and those renting may find it difficult to achieve this whilst maintaining the other bills on the property. With prices rising as much as they have done, people are tending to remain in the family home for much longer, to help save for the deposit.
What can the Council do to help?
By working with the planners and local building companies, the Council will negotiate for a percentage of properties or free serviced land on each eligible site (based on its size)
The Council invites the local housing providers to "bid" for the opportunity to work with the building company, to supply the land or property. This creates more, affordable homes for those who now struggle to gain a foothold on the housing ladder. The opportunity for choice and options are widened, as houses for rent and homes where you can buy a percentage of the property rather than have to fund it all are made available within the district.
Types of Affordable Housing
