What is affordable housing?

Affordable housing can be Social rented housing, Intermediate rented housing or Low cost home ownership

This section explains what affordable housing is and the different types available.

Social rented housing

In East Lindsey social rented housing is owned by private registered providers (as defined in section 80 of the Housing and Regeneration Act 2008), for which guideline target rents are determined through the national rent regime.

Affordable rented housing

Affordable rented housing is owned by private registered providers of social housing to households who are eligible for social rented housing. Affordable Rent is subject to rent controls that require a rent of no more than 80 per cent of the local market rent (including service charges, where applicable).

Intermediate rented housing

Intermediate rented housing is homes for rent provided at a cost above social rent, but below market levels. They must meet the criteria in the Affordable Housing definition for Intermediate Rent in the National Planning Policy Framework. In East Lindsey the values are typically around 80% of market rent. Intermediate Rented properties are allocated through the Housing Register in the same way as social rented and affordable rented housing.

Low cost home ownership

Low cost home ownership is a form of housing for people who would rather buy a home of their own than rent. However they are unable to afford the full purchase price of a suitable property on the open market.

Help to Buy Midlands currently oversee all low cost home ownership schemes in our area. They provide a "one-stop" property shop allowing you easy access to information on affordable home ownership properties across the Midlands.

Help to Buy Midlands can be contacted on 03458 50 20 50 or visit Help to Buy Midlands.

Shared Ownership

You buy a proportion of a property, usually through a Housing Association and pay a subsidised rent on the portion that you do not own. You normally buy between 25% and 75% of the property.

The share you buy is worked out by the Housing Association according to what you can afford. The bigger the share you buy, the less rent you will have to pay. You will need to be able to raise a mortgage for the share you want to purchase unless you have sufficient savings to buy your share outright.

You may be eligible for shared ownership if:
•you can't afford to buy a home on the open market
•You have a household income of less than £60,000 per year
•You are a first time buyer i.e. you don't already own your home
•You are at least 18 years old
•You have a good credit rating
•You have at least £1,500 savings to cover the one off costs involved in buying a home

Help to Buy Equity Loan

Help to buy equity loan is available to first time buyers and anyone who needs help moving up the housing ladder.

With Help to Buy equity loan scheme you are helped to buy your home with an equity loan of up to 20% of the full price of the property. You won't have to pay any interest on this loan for the first 5 years and you own 100% of the property from the start. You will need to be able to find at least 80% of the property price though a conventional mortgage with a lender. Lenders normally require a deposit of at least 5% so your mortgage will typically be for 75% of the purchase price.

Housing associations offering low cost home ownership in East Lindsey

Longhurst and Havelok Homes Tel: 0800 111 4013
Lincs Rural Housing Association Tel: 01790 754219
Waterloo Housing Group Tel: 0800 435016

Lincolnshire Housing Partnership Tel: 0345 604 1472