Affordable housing is for households who are unable to rent or buy on the open market. Within the overall concept of affordability, there is a specific definition of ‘affordable housing’. ‘Affordable housing’
includes social rented and intermediate housing provided to eligible households whose needs cannot be met by the market. Housing costs for these properties are calculated with reference to local incomes.
Social rented housing includes dwellings owned and managed by either the Council or a Registered Social Landlord. Properties are let with rent levels that are set nationally. Social rented affordable housing can also include properties owned by other parties that are rented on the same basis.
Social Housing in Spain should not be confused with low-cost housing designed for wealth creation. It is designed to serve several sectors of the community who would not normally be able to:
- Live and work in high priced areas – this is directed at key staff such as Medical Staff Emergency Crews, Police, Service Shift Workers and many others who’s income prevents them living near their place of employment due to high land and property costs
- Families on low incomes who could not meet a mortgage qualification ratio.
- Young people married and single that cannot raise sufficient deposit to purchase a home of their own.
- Those with special needs.
Timber Frame in the UK by Government and Housing Association decree MUST consist of at least 25% of all buildings – the true figure is that more than 60% of ALL new-builds are Timber Frame and rising annually.
In the period of 2006-2008 £4bn was allocated to Social, affordable housing and at the end of this period some 85,000 affordable homes will have been provided in Great Britain.
Britain also secures more affordable housing by implementing a keen Section 106 policy in that each builder must supply an agreed percentage of his development to a social landlord at the sale cost dictated by law.
Some societies are also creating a self-build community, which will enable low salaried workers to secure a home on a much lower mortgage they can afford than would normally be possible buying from a main
contractor.
If the local council gift the land, and because professional fees are considerably lower using Timber Frame rather than Concrete, top quality homes with all the modern technology built in become very affordable.
Besides supplying affordable housing stock, this scheme keeps local builders and staff in work so why isn’t your council listening?
How the council sell or rent the stock is up to them, but several schemes are possible such as:
- Lease/Purchase
- Co-Ownership
- Part Owned Equity
- Subsidised Rental
Whichever scheme is employed, the council or banks could be on an income stream within 8 weeks – we have done it in UK and can prove it!