Affordable Housing

What Is Affordable Housing?

1. Definition & Purpose

  • Affordable housing refers to homes for sale or rent that are below market rates, aimed at people whose housing needs are not met by the private market.

  • It is a key tool in tackling housing shortage, homelessness, and supporting access to home ownership.

2. Types of Affordable Housing

A. Affordable Housing for Rent

  • Social Rent: Very low rent, set by a national rent regime, generally much lower than market rent.

  • Affordable / Intermediate Rent: Rented at least 20% below local market rents, or at rates between social rent and market rent.

B. Affordable Housing for Sale

  • Shared Ownership: People buy a share of a home (e.g., 25–75%) and pay rent on the rest.

  • Rent to Buy: Homes are rented initially (affordably) and then the tenant has the option to purchase later.

  • Discounted Market Sales: Developers agree to sell homes below market value under planning obligations.

3. Affordability Trends

  • Housing affordability in England has worsened significantly over the last 20 years.

  • In 2002, the ratio of median house price to median salary was 4.92; by 2022, it had risen to 8.28.

4. Who Might Live in Affordable Housing

Affordable homes are for people whose needs are not served by the open market. This includes:

  • Lower-income households

  • Key workers (e.g., teachers, nurses)

  • People with disabilities or special housing needs

  • First-time buyers who need help getting on the property ladder

5. How People Can Access Affordable Housing

  • For rented affordable homes, local authorities usually allocate them. Qualifying often requires a “local connection”: for example, having lived in the area for two years, or having family ties.

  • For shared ownership and similar schemes, people can apply directly, though affordability checks are carried out.

  • In rural areas, “Rural Exception Sites” are used: these are plots specifically designated for affordable homes for people already living locally.

  • As of March 2022, there were 1.21 million households on local authority waiting lists for affordable rented homes — and that’s just one part of the need.

Accessibility by WAH