Affordable housing has recently come under scrutiny as new changes are currently being proposed as to their definition, availability and affordability.
Our Government acknowledges that we have a shortage of affordable housing within England and Wales and new proposals have caused much controversy as to the definition of such homes, with many concerned that these new plans will only increase the housing crisis that we are currently facing (Foster, 2016).
Local authorities are being given more flexibility to manage their own housing waiting lists and £774 million has already been given to 31 councils, excluding London who will receive £820 million to refurbish existing properties and improve the standards of living to those tenants. Registered …show more content…
Previously social housing rents were calculated using a formula that combined local wages and local property values, this meant that rental prices were proportionate not only to the area in which one was living but to the average wage that someone in that area earned. The new proposition does not consider the income of the person applying for the property which means that some tenants will see their rent increase under the new Affordable Housing Policy (Wiles, …show more content…
Affordable home ownership schemes are offering financial help for certain groups of people who cannot afford to a home. Equity loans of up to 20% of the property price will be available for first time buyers and for homeowners who are moving into a newly built property up to the value of £600,000. This loan is interest free for the first 5 years and then charged at 1.75% of the loans value in the sixth year and increase every year thereafter worked out using the retail price index plus 1% (gov.uk, 2015).
The Home Buy Service highlights that whilst this type of loan helps people to get onto the housing ladder they could find themselves owing back more money to the government than they had originally planned
Our Government acknowledges that we have a shortage of affordable housing within England and Wales and new proposals have caused much controversy as to the definition of such homes, with many concerned that these new plans will only increase the housing crisis that we are currently facing (Foster, 2016).
Local authorities are being given more flexibility to manage their own housing waiting lists and £774 million has already been given to 31 councils, excluding London who will receive £820 million to refurbish existing properties and improve the standards of living to those tenants. Registered …show more content…
Previously social housing rents were calculated using a formula that combined local wages and local property values, this meant that rental prices were proportionate not only to the area in which one was living but to the average wage that someone in that area earned. The new proposition does not consider the income of the person applying for the property which means that some tenants will see their rent increase under the new Affordable Housing Policy (Wiles, …show more content…
Affordable home ownership schemes are offering financial help for certain groups of people who cannot afford to a home. Equity loans of up to 20% of the property price will be available for first time buyers and for homeowners who are moving into a newly built property up to the value of £600,000. This loan is interest free for the first 5 years and then charged at 1.75% of the loans value in the sixth year and increase every year thereafter worked out using the retail price index plus 1% (gov.uk, 2015).
The Home Buy Service highlights that whilst this type of loan helps people to get onto the housing ladder they could find themselves owing back more money to the government than they had originally planned