Affordable Housing Scheme
Affordable Housing is part of a Government initiative designed to help individuals and families gain better access to housing and help first time buyers get a foot on the housing ladder by providing low cost housing.
If you’re on a low income, you may be able to get help to buy your own home. Affordable housing is aimed at people who are:
- First time buyers
- Unable to afford to buy a home on the open market
- Looking to rent a home but cannot afford to pay market rents
Cheshire West and Chester Council works closely with housing associations and private developers to make affordable homes available.
There are many different types of affordable housing ranging from the familiar social rented accommodation through to shared ownership, shared equity, HomeBuy and other assisted schemes. You can find out more about these products by viewing our affordable housing leaflet (PDF, 475KB).
Frequently Asked Questions
- What is affordable housing and how does it work?
- How do I apply?
- Who can apply?
- What properties are available?
- What is a Housing Association?
- Do I need mortgage advice?
- What happens if I want to sell my Shared Ownership property?
- What happens if I want to sell my 'Discount for Sale' Home?
- How can I contact the Affordable Housing Team?
What is affordable housing and how does it work?
There are several different types of affordable housing available:
(1) Discount for Sale
Properties are offered for sale to eligible purchasers at a discounted price of the full market value. For example, a £100,000 house with a 25% discount would be offered to eligible applicants for £75,000. This is not a shared ownership scheme and even though there is a discount on the sale price, the purchaser still owns 100% of the property. When you want to sell the property, you must do so on the same terms, which means you must sell it with the same level of discount you received and to someone who meets the criteria for affordable housing.
'Discount for Sale' properties are subject to a Section 106 Agreement. A Section 106 Agreement can restrict how an affordable property is sold and who it is sold to. As such, not all lenders are happy to lend against a property with these restrictions and it is important to ask your lender about this before progressing with a mortgage application.
(2) Shared Ownership / Shared Equity
If you cannot afford to buy a property outright, shared ownership (also known as Social HomeBuy if you are a social tenant) allows you to part buy and part rent your home. You can buy a 25%. 50% or 75% share in your home and then pay a small rent to the landlord or Housing Association on the share that you don’t. For example, if you were to take out a mortgage to own 75% of the property, the landlord or Housing Association would own the remaining 25%, which you would pay rent towards. Additional shares can be purchased when you are able to afford to do so and this is known as ‘staircasing’. On some schemes you may own up to 100% of the property.
Shared equity (also known as FirstBuy) is an alternative way of becoming a home owner. Instead of part buying and part renting your property, shared equity allows people to purchase their home at a discount from market value. This scheme allows you to buy a share of the new property while the landlord / Housing Association owns the remaining share, with no rent payable.
Shared ownership and shared equity are part of the Government's low cost home ownership scheme, known as 'HomeBuy'.
Visit the Government's HomeBuy scheme for more information.
(3) Renting
Affordable Rent
These are affordable homes that are rented above social rent, but below private sector rents. These properties are generally managed by housing associations and the lower rental cost is usually 80% of the full market rent. For example, if the full market rent is £500 per month, eligible affordable housing applicants will pay £400 per month. (Please note, this is not Council or Social Housing and if you wish to apply for Social Housing you must contact your local Housing Association).
Social Rent
These include existing Council or Housing Association properties as well as new Housing Association provision. Affordable homes for rent are made available through Trust Home Choice (external link) – Choice Based Lettings. This scheme allows applicants to ‘bid’ for available properties of their own choice, based on their housing need.
Contact details for some of the main housing associations operating in Cheshire West and Chester can be found on our Registered Social Landlords page.
How do I apply for affordable housing?
If you would like to apply for affordable housing, you need to contact the relevant organisation:
- For new build properties / new developments, contact your local HomesHub for further information by visiting Homes Hub or calling 0845 603 4559. HomesHub is the agent appointed by the Government to provide access to HomeBuy affordable housing products in the Cheshire West area (this does not include 'discount for sale' properties').
- For re-sale shared ownership properties, contact your local housing association or relevant estate agents. Details can be found on our Available Homes page.
- For 'discount for sale' affordable homes, check with your local estate agents (for re-sales) or contact the relevant developer. Details can be found on our Available Homes page.
To confirm your eligibility for affordable housing, please fill in our online Enquiry Form.
Who can apply?
Applicants will be assessed on their suitability to the scheme and every case is assessed on an individual basis. To qualify for an affordable home you need to fulfil the relevant eligibility criteria; every development is different but the criteria usually includes the following:
- Your income must be such that you cannot afford to buy or rent a property at open market values.
- You must have an immediate local connection to the area; this often means you must have lived in the area for the last few years or are employed in the area. You might also qualify if have family ties there.
To check your eligibility for affordable housing, please fill in our online Enquiry Form.
What properties are available?
There are a variety of affordable homes currently available across Cheshire West, including new developments and low cost discounted re-sales. To view the properties currently available for sale, please visit our Available Homes page.
If you would like to be updated when affordable homes become available, you can join our mailing list - just email us at affordablehousing@cheshirewestandchester.gov.uk with your details.
What is a Housing Association?
They are not for profit organisations who provide and manage homes for rent and sale for people in housing need who cannot afford to rent privately or buy. Most Housing Associations provide housing with the help of public money given by the Homes and Communities Agency (HCA) or the local authority, however, the Housing Association itself will also use its own money.
Housing Associations are registered with the Homes and Communities Agency.
Do I need mortgage advice?
Deciding to to purchase a property can be one of the biggest financial decisions of your life and it is a good idea to seek mortgage advice before taking that big step. A mortgage advisor can work out how much you can afford to pay and also help you to complete your mortgage application. The Council has made available a list of FSA approved local mortgage advisors, to provide an additional support to the affordable house buying process. To view this reference list, please visit our Mortgage Advisors page.
Under the 'Shared Ownership Scheme', what happens if I wish to sell the property?
You may sell the property at anytime but you must notify your Housing Association of your intention to sell and they will be able to advise you on the next steps to take.
Under the ‘Discount for Sale Scheme', what happens if I wish to sell the property?
You may sell the property at anytime but you must notify the Council in writing of your intention to sell your affordable home. The property must be sold with the same discount percentage that you received when purchasing the property.
In order to confirm the value of your property, you will need to obtain and provide the council with three written valuations for the full Open Market Value of the property from three reputable local estate agents. The sales value is then calculated and agreed by taking the average of these three valuations and applying the purchase discount. This is then the maximum sales value which you can sell at through your chosen estate agency.
As this scheme is part of the Low Cost Home Ownership scheme, prospective buyers must be eligible for affordable housing. Once you have chosen your estate agency, we will provide them with a ‘Purchaser Enquiry Form’ for prospective buyers to complete and return to us for assessment.
As well as advertising your property through your chosen estate agents, we may also be able to include it on our ‘Homes Available’ page, with a direct link to your chosen estate agent.
How to contact us
If you wish to speak to us about the affordable housing schemes or if you would like any of the above information is Audio, Braille, Large Print format or any other language, please contact the Housing Strategy and Enabling team:
Write to: Housing Strategy and
Enabling, 2nd Floor Council Offices, 4 Civic Way, Ellesmere Port,
CH65 0BE
Phone: 0151 356
6410
Email: affordablehousing@cheshirewestandchester.gov.uk