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exasperated

Affordable Housing?

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A couple of years ago, the 12 residents in my street (a cul-de-sac) fought off the local council, who wanted to build 5 two-storey houses on council-owned land opposite our houses. We cited parking problems and traffic access as our objections, which seemed to have the desired result, a withdrawal of the plans.

Had a letter this morning from a charitable housing association that wants to build two 2-bed bungalows on the same plot of land, with the intention of selling them for £109000 each, a figure they consider to be “affordable”.

The charity says they have established a “considerable need” for affordable housing in our parish and the two houses are only to be sold to local people.

The £109000 is recognised as a discounted price and to retain affordability, a Resale Price Covenant will be enforced, whereby if resold, the price will be at a percentage of Open Market Value, so retaining affordability in perpetuity.

The residents are again hoping to oppose the plans because the parking problems and traffic access have not been resolved and the building of two more houses will only add more vehicles.

However, I am thinking that their view of an affordable price, £109000, could also be a stumbling block to their intended plans. We live in a rural area of Cornwall where the median male weekly wage is £348.80, according to Annual Survey of Hours and Earnings (ASHE) 2007, the latest figures I could find.

Assuming the houses were to be sold to a couple, each earning £18137pa and also assuming 3.5 + 1 x salary, they could theoretically borrow £81618, leaving a deposit of £27381 to be found, almost 26%. The houses will presumably be sold to FTBs because otherwise they wouldn't need a new "affordable" house.

Anybody here any bright ideas of wording an objection to these plans based on the assumptions of affordability, or are we going to have two houses built which will remain empty for the foreseeable future?

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A mortgage should really be about a third of a persons wage to make it affordable. If they were selling to a couple earning your stated average the couple would have a joint wage of £2790.40.

A third of this is £930pcm to put towards a mortgage.

If the couple borrow 90% of the £109,000 on a mortgage of around 5% this is about £410pcm.

This makes the property affordable.

A couple earning the stated amount should be able to save save the deposit of 10k between them over a year based on the third being saved.

This looks very affordable to me but the best bet is they wont get built as most HA's are in trouble with the banks at the moment.

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Affordable housing is often sold on a part buy part rent scheme.... If the property is 100k, is that a 50% share based on a 200k value? you pay a morgage of 100k, but you pay a very low rent on the other half...

100k at 5% 'costs' £416 a month in interest, repayment is spread out as required, but it is essentially saving up to pay off the debt over a period of time. This is part rent part buy, so the 'rent' part is usually less than half the mortgage, so lets say 150quid, and repayment will be about 50 quid

Total cost 600 quid a month (usually just above to the rent you would pay on this property?). This will be affordable to your couple of 27k, or a single person on min wage if they rent a room out for 200 quid a month.....

Your only concern is a NIMBY one, affordable housing attracts riff raff and can bring down a neighbourhood, when you see affordable housing, read council housing. As for parking central government has decreed that the average household needs half a car, and if there is more spaces reducing the number of available spaces will persuade people to change and use public transport.

Edited by moosetea

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Let them be built, gets some builders some work, and maybe helps a 'local' family or two stay in the area. Or are you really a NIMBY after support?

Edited by deflation

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It may be affordable at today’s interest rates, but what about when they rise?

Also wasn’t affordability the reason banks lent at stupid multiples and caused House price inflation?

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It may be affordable at today's interest rates, but what about when they rise?

Also wasn't affordability the reason banks lent at stupid multiples and caused House price inflation?

If you are concerned about Interest rates rising to 9% or above you can get a 10 year fixed deal for about 5->6%. If you think we will have higher interest rates to fight higher inflation you should buy and fix and higher inflation will erode the debt...

Edited by moosetea

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Affordable housing is a euphamism for rubbish expensive housing

Correct. It's a euphemism for "be seen to be doing something", and it's always championed by people who are safely tucked away in their own, cheaply purchased houses.

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I should point out that the 12 houses in the street were council houses, nine have been bought and three are rented from a Housing Association.

The land was once the front gardens for the properties. The road is so narrow that the refuse collectors have difficulty driving down on collection day, so most residents have taken to parking their cars on the land for which the application is to be made.

Parking is a real nightmare already and building more properties will exacerbate the problem.

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Anybody here any bright ideas of wording an objection to these plans based on the assumptions of affordability, or are we going to have two houses built which will remain empty for the foreseeable future?

yeah. form a pro- new building group bigger than the nimbies. make a huge petition.

and send it to town planning, building control and your local MP

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  • 285 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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