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What is Affordable Housing?

Background to the Association...
Northamptonshire Rural Housing Association was established in 1992 with the aim of providing affordable housing in the rural areas of Northamptonshire. We currently manage 405 properties across 36 villages of the county.

We are a non-profit making organisation which works to charitable rules. We are registered with the Housing Corporation, and therefore receive public subsidy to develop properties.
NRHA are a Joint Commissioning Partner of East Northamptonshire Council, with the responsibility for working with Parish Councils and local communities to identify the housing needs of their village and to assist THEM in meeting the needs.

We will only undertake housing needs research where there is Parish Council support. From the survey we will assess the level of community support, and again we will only work where support is evident.

The reason for our work...
There is a desirability to live and raise families in the quieter environment of a village location, which has resulted in:
•house prices rising disproportionately in comparison to urban areas
•private rents have also increased because of demand
•The right to buy has drastically reduced Local Authority stock

Unfortunately, this has meant that parishioners, usually the young and elderly (some of which may have connections with the village going back generations) can not afford to live in their own village because they find it difficult to secure suitable, affordable accommodation, and therefore have to move away.

This will have a dramatic effect on the village, often impacting on local facilities and community involvement/events, and could ultimately result in the village becoming a dormitory settlement.
When looking at rural affordable housing, the first step is to identify if there is a local housing requirement within the Parish.

Accurate identification of needs can not be achieved without local support and consultation. Without the backing of the Parish Council the housing need survey could be viewed with suspicion locally. The Parish Council can promote why the survey is being conducted and give it local ownership.

This is the first step in providing affordable housing within any rural settlement, however, each stage needs to be supported locally; initially by the Parish Council and then by the wider community.

Once a survey has been conducted, and if a need is identified, then we will work with the Parish and District Council, to identify a suitable site upon which a development could be provided to satisfy the local housing requirement. Again, this will need to be supported by the wider community.

Such land will usually fall outside of the village boundary line but which can be developed utilising the Exceptions Planning Policy where there is clear evidence of local need, and local support. On such land, the design and layout of individual properties must be in-keeping with the rest of the village. Again we would seek advice, suggestions on layouts and ultimately we would hope that the Parish Council would be co-sponsor to any planning application. This would highlight that the scheme is locally supported – but does not place any responsibility/financial implications upon the Parish Council!

What is affordable housing?
Any small scale scheme would include a mix of property sizes and tenures. Some homes may be available for rent and other for part, or shared ownership.

Rented properties are made available to people with a strong local connection, at an affordable rent. This type of property always remains in the ownership of the housing association and residents do not have the opportunity to purchase the house under the ‘right to buy’ scheme. This means that the houses will always be available to local people and will remain affordable. Because of the type of land that we would look to develop (exceptions sites) the Association would have to enter into a Section 106 Agreement that would restrict occupancy to individuals who can demonstrate a local connection. The S.106 will detail what is considered as a local connection, but will include the following:
•Currently resident (each local authority will set the number of years that this must be)
•A period of previous residence (again the local authority will set the number of years that they must have been resident within an overall period of time)
•Work in the village
•Have close family (parents or children) that they need to be close to for support.

All surveys are discounted to ensure that there is not an overprovision of affordable housing provided and that they can all be let to individuals with strong local connections, however, in the unlikely event that any properties can not be let to such a person, then the Section 106 Agreement will allow the Association to identify people from an adjoining parish. Again, the S.106 will detail what parishes can be considered.

Shared ownership is an alternative to renting and full ownership of a home. It is particularly suitable for people who have a regular income and want to buy their own home, but cannot currently afford to do so on the open market.

Under a shared ownership scheme you can buy a share of your home and pay a nominal rent on the remaining share. By retaining a share of the house, the Association can ensure that the home is used to provide housing for a local person/s in need of an affordable home. Part owners of a property developed within an affordable scheme are not able to buy the property outright. If the property is sold, it would be valued and the part owner would receive their proportion of the sale price. In this way they would benefit from any increase in the value of the property, should this occur.

Parish Council involvement
As stressed earlier, the involvement of the Parish Council is crucial if affordable housing is to be provided. The PC is asked to work with the Association to identify land, the design and layout of the project and individual dwellings is done in conjunction with the PC and ultimately we would ask that they co-sponsor the planning application (at no cost) in order to underline their support for the project.

When we look to allocate the properties we would always ask the Parish Council to confirm an individuals local connection so that we can be sure that the properties are allocated to local people. This is not only relevant on first allocations but also on all subsequent allocations throughout the life of the scheme.

Useful Links
The National Affordable Homes Agency