SUPPLEMENTARY HOUSING REGISTER FOR AFFORDABLE HOMES

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1 SUPPLEMENTARY HOUSING REGISTER FOR AFFORDABLE HOMES EXPLANATORY NOTES

2 WHAT IS THE SUPPLEMENTARY HOUSING REGISTER? The Supplementary Housing Register (Affordable Housing) is a registration scheme for households who are looking for affordable housing in Ceredigion but who do not wish to rent housing from the Council or a housing association. The register is primarily aimed at the following groups: Those looking for homes who cannot afford market prices e.g. local first time buyers or someone whose financial circumstances has recently changed Social housing tenants who can now afford to buy a home People returning to the housing market after a long interval and, in some circumstances Older people seeking affordable specialist accommodation, such as private Sheltered or Extra Care housing The Council has recently strengthened its planning policies on affordable housing. What this means in practice is that the Council now asks developers to provide some affordable homes on all private development sites over a certain size when they apply for planning permission. Most new developments will now include a mix of affordable housing including housing association homes to rent and affordable homes to buy. In the future, for example, developers of Extra Care Housing for the Elderly may also choose to develop new affordable homes on a tenure neutral basis. To assist with the sale of affordable homes the Council has established the Supplementary Housing Register scheme. This service will allow the Council to help match up local households looking for affordable housing with future schemes taking place. The Council can put forward the details of prospective purchasers to developers who are building new homes for sale. Being on the list therefore does not mean that you will necessarily qualify for an affordable home. Important Do NOT complete the Supplementary Housing Register registration form if you are looking for a home to rent from the Council or from a housing association. Instead you need to complete a Ceredigion Housing Register form. DO YOU QUALIFY FOR THE SUPPLEMENTARY HOUSING REGISTER? To join the Supplementary Housing Register you must meet the following simple criteria: Be of minimum age Have a link with Ceredigion through work or residence (please read Affordable Homes Ceredigion) Be unable to buy a property on the open market 2

3 Be able to raise a mortgage for the restricted price i.e. a % of the open market value e.g. 70% MINIMUM AGE You must be at least 18 years old to join the Supplementary Housing Register. LOCAL CONNECTION You must have a local connection with Ceredigion. This means that Either: You have lived in Ceredigion for a continuous period of10 years any time in the last 20 years. Or You are a Key Worker i.e. someone who plays an important role in the provision of key services in Ceredigion and are employed on a full time (37 hours) permanent basis within Ceredigion. You have moved to Ceredigion because you need to care for or need to be cared for by someone who satisfies the first category and it is not possible for you to live with them in their house IMPORTANT TO REMEMBER - it is your responsibility to satisfy the Council that you meet these rules and - to show that you will be living in your affordable home on a full time basis and have no other legal interest in residential property. (See the Affordable Homes leaflet for further information). KEY WORKERS If you do not meet the local connection criteria, you are only eligible to join the Register if you are a key worker or a carer. A key worker is someone who has a job in Ceredigion or is taking up a job in Ceredigion which the Council classifies as essential to the operation of local services. In general, this is: A need to be in Ceredigion for employment purposes as a key workers on a full time (37 hours) permanent basis. and A key worker is defined as follows: A teacher in a school or in a further education establishment or sixth form college; 3

4 A nurse or other National Health Service staff; A police officer; A probation service employee; A social worker; An educational psychologist; An occupational therapist employed by the local authority; A fire service employee Any other person whose employment fulfils an important role in the provision of key services in Ceredigion e.g. a tradesperson in construction. IMPORTANT TO REMEMBER In these circumstances, you will need to provide written evidence from your employer of your employment status and reasons for needing key worker housing (See affordable Homes leaflet for further information). The Council may from time to time review the range of occupations defined as key worker posts. BUYING AN AFFORDABLE HOME? We want to make sure that even housing to buy provided through the Affordable Homes policy is affordable to people in the local community. To help people who would not otherwise be able to buy their own home the local authority restricts the price of certain houses. These are called affordable homes. The restricted price is a fixed % of the open market price. The value of the house may therefore go up or down just like any other house. However, the restricted price will always be the same % of the open market value e.g. 70%. For more details see the Councils recent publication Affordable Homes Ceredigion and the UDP policies (H2.1, H2.2 and Appendix 1). The Housing Register provides a means of gauging the likelihood of qualification for affordable properties. Please note that even if you are registered on the Council s Supplementary Housing Register you will still need to go through the formal verification process when you actually find an affordable house to buy in order to work out whether you qualify to occupy that specific property. To be eligible to register for the list, you must show (through the information you provide on your application form) that You cannot afford to buy the home you need on the open market. We calculate this by comparing your earnings and purchasing power with average house prices at the time of your application and You have sufficient purchasing power / income to afford to buy affordable home under the scheme. 4

5 OWNING AN EXISTING PROPERTY The scheme is primarily aimed those who cannot access a property that meets their needs in he housing market. You will NOT be eligible to join the Register if: You or a member of your household currently owns or holds an interest in a property. This includes any property you own which is occupied by someone else. For example a property which you rent out. There are two exceptions to this requirement, which mean that you will be eligible to join the Register if: You are currently involved in a relationship breakdown where the sale proceeds or an existing home are or are unlikely to be sufficient to enable you to purchase a home on the open market. You are an older home owner i.e. over 55 years of age, looking for Sheltered or Extra Care housing where the proceeds of any house sale will be insufficient to purchase a suitable specialised dwelling on the open market. HOW TO APPLY TO JOIN THE SUPPLEMENTARY HOUSING REGISTER. Why not apply on-line? To join the Supplementary Housing Register you must complete the Supplementary Housing Register Registration form. Ceredigion s preference is for on-line applications. This helps us reduce administrative time and cost and we can also contact you very quickly if you have provided us with e- mail contact details. It will only be possible to complete the form on line from January You can do this by logging onto the Council s website and following the links where there is an option called the Ceredigion Supplementary Housing Register - Registration. If you do not have access to the internet at home you may be able to complete the form on line in local libraries. Printed application forms are also available and can be sent on request or collected from the Council s Offices at - Environmental Services & Housing Department Neuadd Cyngor Ceredigion, Penmorfa, Aberaeron SA46 0PA Tel : housing@ceredigion.gov.uk 5

6 THE INFORMATION YOU PROVIDE The application form asks you for a lot of information about yourself. Please be patient and where requested, provide us with full answers. The information you provide is confidential and will only be made available to organisations or individuals who can assist you in obtaining housing. ADMINISTERING THE SUPPLEMENTARY HOUSING REGISTER You will normally receive an acknowledgement of your application to join the Register within 15 working days. IMPORTANT TO REMEMBER If you provide an address we will always try and communicate with you by so please give us an up to date address. If you are NOT eligible to join the Register because you do not meet the criteria set out in this leaflet, we will not be able to hold your details. However, please feel free to reapply if you believe that you qualify at some future date or if you have found an affordable home that you wish to purchase you can request verification of occupancy qualification directly from the Forward Planning Team, Ceredigion County Council (see Affordable Homes leaflet). You must let us know of any relevant changes in your circumstances or requirements eg areas of choice, size of property required or of any relevant changes that may effect your eligibility to qualify for affordable housing e.g. your borrowing potential. Unless the council has your full and current contact details, we will not be able to forward them to developers should a property become available. If you do not reply within 7 days to an or letter asking if you wish to be considered for a property, we will write and ask whether you are still interested in housing and want to remain on the Register. If you do not reply within one calendar month, your registration will be cancelled. We will send you an annual renewal form. If you do not complete and return the renewal form within one month of the form being sent you to you your application will be removed from the Register. KEEPING YOU UP TO DATE We will keep you informed as long as you have received an acknowledgement of your application. We will have all your details on record and you will hear from us from time to time if there are any affordable homes being developed in your area or close to it. If one of these properties is suitable then you will need to go through the verification process set out in the Affordable Homes Leaflet in order to find out whether you qualify for that particular property. You do not need to contact us on a regular basis. You must bear in mind that initially, at least, the number of these properties which will be developed will be small. 6

7 HOW DOES THE SUPPLEMENTARY HOUSING REGISTER WORK? When a developer is obliged to provide affordable housing as part of his planning permission, he/she enters into a legal agreement to provide affordable homes to buy or rent. Through the legal agreement the Council will ask the developer to offer the properties, initially, to households on the Supplementary Housing Register Register. Anyone who wishes to be considered for a home in a specific development and is not on the Register at the time the new homes are marketed will need to complete the form and be confirmed as eligible in the first instance. Developers marketing homes will eventually have copies of the registration form at their show-home or they may direct enquiries to the Council. Only where there isn t a suitable person who meets the Affordable Housing criteria will the developer be able to sell or rent the home(s) to other interested people at the open market value. WHAT HAPPENS WHEN A NEW DEVELOPMENT BECOMES AVAILABLE? Step 1 From time to time, any new affordable homes will / can be identified via: The Council s Website Displays or leaflets in the Council s offices and any relevant Council / Tenant Newsletters Developer / Builder s own marketing material Local estate agents and local media (in some cases) Step 2 The Council will scan all those applicants who, based on the information on their application form Are seeking a home in that area of the county Are seeking the type and size of property available Have demonstrated that they are able to afford the affordable i.e. restricted price for the home Step 3 The Council will contact all the applicants to ask if they are interested in buying or renting one of the homes. The Council will then forward their details to the developer for consideration. Any applicant who does not reply within 7 days will not have their details forwarded. An applicant who does not wish to be considered for the homes will not be penalised but will remain on the Register for any future opportunities. They must notify the Council, however, that they are not interested in this instance. 7

8 Step 4 The developer will have their own terms and conditions for the process of selling their homes. Normally applicants will be asked to complete a sales reservation form and exchange contracts by a specific date. If during the reservation period the developer believes that it is unlikely that exchange of contracts will occur by the agreed date, the developer may consider re-offering the property for sale and the next eligible applicant. Important The Council will not intervene at this stage in the selection process which will be a matter for the developer and the applicant. The scheme simply INTRODUCES eligible prospective purchasers with providers. AWARDING PRIORITY Where affordable homes are developed by private house builders, the Council will not distinguish between applicants according to their relative levels of housing need i.e. as with the Council s main housing register. Their need for affordable housing has already been identified through the scheme registration. If however, on council sponsored affordable housing schemes e.g. involving a Housing Association or council owned land, there are many more applicants than homes the Council will, initially, prioritise those applicants: 1. who are existing Council or Housing Association tenants (which helps to free up social housing for those in need) and 2. where there are a number of suitable applicants i.e. 2 or above, will consider applicants by date of application. Where affordable homes are developed by a housing association the Council and the housing association reserve the right to prioritise applicants on the basis of housing need. This is because some of these properties are being built with the help of public money and we are under a duty to use these funds wisely. SELLING ON YOUR AFFORDABLE HOME We are trying to ensure that these homes remain affordable in perpetuity i.e. for the foreseeable future, in order to benefit subsequent purchasers faced with similar affordable housing difficulties. That means that if you want to sell your home and move to another property or part of the country you will be restricted in whom you can sell it to and at what price. It is, after all only fair that someone else should benefit from an affordable home in the same way that you have. Although you will not be able to sell at full market value, you will be able to benefit from any growth in the home s value. You should be aware however that the value of homes can go down as well as up and that the Council does not guarantee or offer advice on house price movements under any circumstances. 8

9 If the purchaser / tenant of a new affordable home wishes to move, their home may again become available for sale / letting through the Supplementary Housing Register Register. The process for selling or letting the home will then be the same as described above for new developments. The Council or its nominee may in exceptional circumstances of extreme hardship consider buying back a property if the purchaser has an urgent need to move and cannot do so but will not, under any circumstances, be obliged to do so. Important. You must think very carefully about the implications of these restrictions on the future sale of your home. Restrictions on the occupation of homes under the Register You and your household or immediate family will not be permitted to purchase or rent a new affordable home on more than one occasion. You must occupy your new affordable home as your main or principal home. TYPES OF AFFORDABLE HOMES There are several types of affordable homes which may become available for people on the Register. These are described, briefly, below. In the Supplementary Housing Register Registration form you are asked to state which types of affordable home you are interested in. Low Cost Housing for Sale / Purchase This is the primary means by which Ceredigion County Council in partnership with Developers and Housing Associations will be providing affordable housing. This is where you buy a property at a percentage discount from the open market value. A covenant is placed on the property which requires you, if you wish to move, to sell the property at the same discount from the open market value. This enables other people to benefit from the same discount as you did. For example, if you buy a home at 70% of open market value you can only sell the property on again in the future at the same percentage (70%) of open market value. Although you will never be able to sell at full open market value you will benefit proportionately from any increase in the open market value of the property. Another form of low cost housing for sale is retained / shared equity housing. This is where you purchase less than 100% (for example 70%) of the equity in a property and a third party (either the council, a developer or a housing association) retains the remaining proportion of the equity (in this example 30%). The third party retains their percentage of the equity (in this example 30%). The third party retains their percentage of the equity by way of a mortgage on the property and this enables that organisation to control future sales to ensure these are to eligible purchasers at an affordable price. This means you will not be able to own the property outright. However, you will benefit proportionately from any increase in the open market value of the property. 9

10 Homebuy Homebuy is not strictly a Ceredigion County Council Affordable Housing initiative but an all Wales one which supports house purchase by offering financial assistance (an interest free equity loan) to eligible local applicants who cannot afford to buy a property in their local area. The Homebuy Scheme is operated in Ceredigion by Cymdeithas Tai Cantref. You will still have to fund the affordable share of the property by obtaining a conventional mortgage from a bank or building society and / or from any savings you may have. The Homebuy loan is repayable when you sell your home or you can repay earlier if you wish. Currently, the scheme is targeting first time buyers and young people having difficulty finding affordable housing in their local areas. Eligibility and conditions regarding property to be purchased are stringent. There is currently funding for just 15 or 16 Homebuy places each year in Ceredigion and this is unlikely to increase. Housing at below Market Rents This is housing built by a developer or housing association to be let at rent levels above normal housing association rents but below full market rents. At the moment these schemes are not available but they may be developed in the future provided the Council can establish a clear market demand. Leasehold Schemes for the Elderly These schemes are aimed at people over 55 years of age. They allow you to buy Sheltered or Extra Care housing on a leasehold basis at a reduced price, usually 70% of the open market value. When you sell the property, you will give the next owner the same percentage discount that you were given. The schemes aim to provide an opportunity to purchase a home in a supported or Extra Care environment. Support services typically available include: Assistance from Scheme Manager Communal facilities Emergency call system Caretaking Liaison with care providers The schemes also take away the worry of maintaining your own property as maintenance of the external structure and grounds is undertaken by the freeholder. This is often a Housing Association. The services provided are covered through a service charge. Ceredigion County Council plans to develop Extra Care Housing schemes for the elderly on this basis sometime in the near future. 10

11 Important Many households in Ceredigion are now struggling to get onto the housing ladder and these schemes will only assist a relatively small number of them. To make the most of the Supplementary Housing Register - Affordable Housing Scheme, it is important that you keep your contact details up to date and respond very quickly to any notification of a property becoming available and tell us if you want your name removed. Affordable Housing units may only come up intermittently and be sold very quickly. As long as we have acknowledged your application, please be assured that we have your details and we will contact you if anything is available. 11