Affordable Housing Flashcards
What is affordable rent in Cheltenham?
Affordable rent in Cheltenham is set at up to 80% of local market rent for a comparable property
It is intended to be lower than full market rent but higher than social rent, providing accessible rental options for residents in need.
What is ‘London Affordable Rent,’ and is there an equivalent in Cheltenham?
‘London Affordable Rent’ is a rent benchmark introduced by the Mayor of London, aimed at providing more affordable rental rates than typical Affordable Rent levels in the capital. Cheltenham does not have a direct equivalent.
Affordable rented housing is available at up to 80% of local market rents, often through housing associations and Cheltenham Borough Homes.
What are the approximate rental values for affordable housing in Cheltenham?
Rental values for affordable housing in Cheltenham vary depending on the property type and Local Housing Allowance (LHA) rates. As of 2024, estimated LHA rates are:
* 1-bedroom home: £111.83 per week
* 2-bedroom home: £143.34 per week
* 3-bedroom home: £174.43 per week
* 4-bedroom home: £240.59 per week
These values serve as a guideline, and actual affordable rents may differ based on agreements with registered providers and government policies.
What is a registered provider in Cheltenham?
A registered provider (RP) is an organization, such as a housing association or Cheltenham Borough Homes (CBH), that is registered with the Regulator of Social Housing and manages affordable housing.
RPs develop, own, and maintain social and affordable housing stock in partnership with Cheltenham Borough Council.
How is affordable housing valued in Cheltenham?
Affordable housing valuation in Cheltenham follows a rental income-based approach:
* Calculate gross rental income – Based on affordable rent levels
* Deduct costs – Including management, maintenance, and repair costs
* Determine net income – What remains after operational costs
* Apply a capitalization rate – Discount the future net income back to present value based on risk factors
This method reflects the investment value of affordable housing while ensuring rents stay within affordability thresholds.
What is the ‘Help to Buy’ scheme, and is it available in Cheltenham?
The Help to Buy: Equity Loan scheme, which allowed first-time buyers to purchase a new-build home with a low deposit and government loan, ended in March 2023.
It was previously available in Cheltenham but is no longer active. Cheltenham Borough Council now supports other affordable homeownership options, including Shared Ownership and First Homes Scheme.
What impact did the ‘Help to Buy’ scheme have on new-build sales in Cheltenham?
Nationally, the scheme supported 31% of all new-build sales. In Cheltenham, it helped first-time buyers access new-build properties with lower deposit requirements.
Since its closure, demand has shifted toward Shared Ownership and First Homes as alternative routes for first-time buyers.
When did the ‘Help to Buy’ scheme end in Cheltenham?
The Help to Buy: Equity Loan scheme officially ended in March 2023 across England, including Cheltenham.
What is the anticipated effect of the end of the ‘Help to Buy’ scheme on Cheltenham’s housing market?
The end of Help to Buy may lead to:
* A gap in the new-build market as first-time buyers seek alternative purchasing options
* Increased demand for Shared Ownership and the First Homes Scheme
* Developers adjusting strategies, potentially offering their own incentives to replace government-backed support
* Higher reliance on private mortgage solutions, making affordability a concern for some buyers
Cheltenham Borough Council continues to focus on expanding affordable homeownership schemes to support local demand.
What is Cheltenham Borough Council’s policy on affordable housing?
Cheltenham Borough Council aims to increase the provision of affordable housing, as highlighted in their 2023-2027 Corporate Plan. The Joint Core Strategy (JCS) Policy SD12 mandates that on sites of 11 dwellings or more, or sites with a maximum combined gross floor space greater than 1,000 sqm, a minimum of 40% affordable housing is required within the borough.
cheltenham.gov.uk
How many new homes does Cheltenham need to deliver every year?
The Local Housing Needs Assessment (LHNA) identifies a need for Cheltenham Borough to deliver 3,874 new affordable homes between 2021 and 2041, averaging 194 affordable homes per year.
cheltenham.gov.uk
What is Cheltenham Borough Council’s strategic affordable housing target?
The council’s strategic target, as per the Joint Core Strategy Policy SD12, is to secure 40% affordable housing on qualifying sites within the borough.
cheltenham.gov.uk
What is the affordable housing requirement for building on public sector land in Cheltenham?
While there isn’t a specific percentage outlined exclusively for public sector land, the JCS Policy SD12 requires that any development meeting the specified thresholds provides a minimum of 40% affordable housing.
cheltenham.gov.uk
Which sites are obligated to provide affordable housing in Cheltenham?
Developments that consist of 11 dwellings or more, or have a combined gross floor space exceeding 1,000 sqm, are required to provide a minimum of 40% affordable housing.
cheltenham.gov.uk
What is the ‘threshold approach’ in Cheltenham’s affordable housing policy?
Cheltenham’s approach requires that developments meeting the threshold of 11 or more dwellings, or exceeding 1,000 sqm, provide 40% affordable housing. This policy ensures that larger developments contribute significantly to affordable housing provision.
What is the required affordable housing tenure split for developments in Cheltenham?
The tenure split should reflect local housing needs, encompassing a mix of social rent, affordable rent, and intermediate housing. Specific proportions are determined based on the most recent housing needs assessments and may vary accordingly.
What are ‘First Homes’ in Cheltenham?
‘First Homes’ is a government initiative offering homes at a discount of at least 30% compared to market prices, aimed at first-time buyers. In Cheltenham, these homes are integrated into new developments, with the discount remaining in perpetuity for future eligible buyers.
cheltenham.gov.uk
Will ‘First Homes’ always retain their discounted status in Cheltenham?
Yes, the 30% discount on ‘First Homes’ is preserved in perpetuity, ensuring that future eligible buyers can benefit from the reduced price.
What are the different tenures of affordable housing recognized in Cheltenham?
Affordable housing in Cheltenham includes:
- Social Rented Housing: Housing provided at rents lower than market rates, typically managed by local authorities or registered providers.
- Affordable Rented Housing: Housing let at up to 80% of local market rents.
- Intermediate Housing: Includes shared ownership and other schemes that offer routes to home ownership at costs below market levels.
- First Homes: Discounted market sale units for first-time buyers, sold at a minimum 30% discount.
cheltenham.gov.uk
What tenure will ‘First Homes’ be classified under in Cheltenham?
‘First Homes’ are considered an intermediate tenure, providing an affordable home ownership option for first-time buyers.
What is shared ownership in Cheltenham?
Shared ownership allows purchasers to buy a share of a property, typically between 25% and 75%, and pay rent on the remaining share. Over time, owners can purchase additional shares, potentially up to full ownership. Eligibility criteria and specifics are managed by registered providers in partnership with the council.
cbh.org
What is ‘London Living Rent,’ and is there an equivalent in Cheltenham?
‘London Living Rent’ is a scheme specific to London, offering affordable rents to help tenants save for a deposit. While Cheltenham doesn’t have a direct equivalent, affordable rented housing is available, typically set at up to 80% of local market rents.
cheltenham.gov.uk
What is ‘Discounted Market Rent,’ and is it applicable in Cheltenham?
‘Discounted Market Rent’ refers to rental properties offered at a percentage below market rent, often around 80%. In Cheltenham, affordable rented housing follows similar principles, with rents set at up to 80% of local market rates.
cheltenham.gov.uk
What is social rent in Cheltenham?
Social rent is the most affordable rental option, with rents determined through a national formula, typically lower than affordable rent levels. These properties are usually managed by local authorities or registered providers.
