What Is “Affordable Housing”?

“Affordable housing” in planning doesn’t mean what most people think. It’s not just “cheap.” It’s a legal category for homes that are:

  • Below market price or rent
  • Reserved for people who can’t afford normal prices
  • Delivered by councils or developers as part of planning rules

There are 4 main types

Social Rent

  • The cheapest option
  • Rent based on a fixed formula (not market prices)
  • For people on very low incomes
  • Usually council or housing association homes

Affordable Rent

  • Up to 80% of local market rent
  • Still expensive in high-cost areas
  • Often built by housing associations using public subsidy

Shared Ownership

  • You buy part of the home, rent the rest
  • Deposit is lower than buying outright
  • Monthly payments often still high
  • You can “staircase” up to buy more over time

First Homes

  • A government scheme for first-time buyers
  • Must be sold at 30% discount
  • Must be under £250,000 (or £420,000 in London) after the discount
  • Buyer’s income must be under £80,000 (£90,000 in London)