by Rosie McLean 
With the recent economic downturn, the need for affordable housing has sharply increased throughout the country.
But demand for such housing significantly exceeds the supply.
This blog post will discuss some of the different types of affordable housing available in the UK and explore why it is so important.
Why did the need for affordable housing skyrocket?
The need for affordable housing in the UK has steadily increased over the years due to several factors. The lack of job security, rising costs of living, and higher house prices have made it increasingly difficult for many people to access housing they can actually afford.
Pressure on public services and the rise in homelessness in recent years have further highlighted the importance of providing more accessible and secure housing options for individuals and families.
With demand for affordable housing significantly outpacing its availability, it is an issue that needs to be addressed urgently if communities across the UK are to have reasonable options when it comes to finding a place to call home.
Rent-to-buy schemes
The Rent-to-Buy scheme is one of the most popular forms of affordable housing in the UK. This type of scheme allows people to rent a property for an agreed period before having the option to purchase it at a discounted rate at the end of that period. The time can vary but is typically between three and five years.
This type of scheme is ideal for people who cannot purchase a property outright but are interested in eventually owning one. It also saves them money over time by reducing their monthly rent payments.
Social housing
Social housing is an affordable housing option provided by local councils or non-profit organisations such as housing associations. Social housing is often provided below market rates, making it more accessible to those on lower incomes or with additional support needs or homelessness.
Shared ownership schemes
Shared ownership schemes are another way people can access affordable housing in the UK. These schemes allow individuals or families to buy part of a property while renting out the rest from a local authority or a private landlord.
A shared ownership scheme allows you to buy a share of a property, usually between 25% and 75%, and pay rent on the remaining share. You can increase your share over time through a process called “staircasing.”
Shared ownership schemes can be beneficial because they charge lower upfront fees than buying a house outright. They usually have reduced mortgage payments due to shared ownership agreements between buyers and landlords or authorities.
A similar affordable housing option is called discounted sale. Some local authorities and housing associations offer properties for sale at a discount, usually to first-time buyers.
Self-build
Building your own home can be affordable, as you can apply for a self-build mortgage and take advantage of lower building costs. Building your own home can be significantly cheaper than buying an existing property. This is because you can save on estate agent fees, stamp duty, and the cost of renovations or repairs. Self-builders can add value to a property by choosing high-quality materials and finishes.
In addition, self-build homes are often designed with energy efficiency in mind, leading to lower utility bills and a reduced carbon footprint.
Overall, many different kinds of affordable housing options available today can help make owning your own home more achievable for those on lower incomes.
When choosing an affordable housing option, What Is Important?
The best affordable housing option depends on individual circumstances and priorities. Some people may prefer social rented housing or shared ownership, while others may be interested in self-build or rent-to-buy schemes. It’s important to consider your needs, budget, and eligibility for different affordable housing schemes. It’s essential to do your research and consider all the options available before deciding.
Chimneypots is the leading estate agent offering sales and lettings services across Southampton, Fareham and the surrounding areas. A family-run business, Chimneypots blends traditional service standards with modern technology to deliver a high-quality service to anyone looking to achieve the very best price for their property.
