Affordable Homes, otherwise known as the intermediate housing market, are provided for those people who do not qualify for a social rent property through a Council or Housing Association, but who cannot afford to buy a home outright on the open market and don't want to pay the high rents associated with privately rented properties.

There are a number of terms applied to this market which can become somewhat confusing. To help you through this maze we have given examples below of some of the types of tenure. Different schemes operate n different areas and for different target groups so not all schemes will be available for you.

New Build Homebuy (formerly known as shared ownership)
With New Build Homebuy you buy part of the property, normally between 25% and 75%, and pay a subsidized rent on the part you don’t own.  Later on, if you want and can afford to, you can normally buy the remainder of the property.  The more you own, the less rent you pay.  If you eventually buy the property outright, no rent will be payable.  New Build Homebuy properties are usually new properties on specific developments.  New Build Homebuy is available to key workers and to first time buyers who cannot afford to purchase a property outright on the open market.

See our 'Available Properties' page for details of New Build Homebuy properties in your area.

Open Market Homebuy
There are currently two Open Market Homebuy options to choose from. For full details please use the following link to the Housing Corporation's website where the scheme is explained in detail.

Equity Loan
An Equity Loan scheme works very much like Open Market Homebuy, but you will normally be provided with an equity loan from one source. There will not be any monthly repayments on the equity loan but it is linked to the value of the property you purchase.  This means that if your property increases in value you will repay more when you sell. If property prices fall you may be required to pay back the initial equity loan provided.  Equity Loan schemes enable you to purchase a property from the open market, although some equity loan schemes are provided on specific developments.  Equity Loan schemes are operated by some housing associations and some key public sector employers – eligibility for these schemes can vary.

First Time Buyers Initiative
With the First Time Buyer’s Initiative you buy a minimum of 50% of property on a specific First Time Buyer’s Initiative development.  The remaining 50% is provided as an equity loan.  There are not any monthly repayments on the equity loan for the first three years of ownership.  After this there will be a monthly fee of 1% per annum on the equity loan which will increase each year by a fixed percentage to a maximum of 3% after you have owned the property five years.  Properties through this scheme are available to key workers and first time buyers who cannot afford to purchase a property outright on the open market.

Intermediate or Sub Market Rent
For those who cannot afford or do not want to to buy a property or do not qualify for any of the affordable home ownership schemes above, there are properties available through Housing Associations at rents below the market average.

Right To Buy
Some Local Authority tenants and tenants of non charitable housing associations have the right to buy their home at a discount which is calculated dependent upon the number of years they have been a social housing tenant.   Council and housing association tenants should contact their Landlord for further information.

Social Homebuy
Some council tenants and tenants of participating housing associations may be able to buy their rented home outright or on a shared ownership basis with a pro rata discount, depending on the area in which they live.   Council and housing association tenants should contact their Landlord for further information.

Voluntary Purchase Grant
Similar to Right to Buy but aimed at Housing Association tenants. Housing association tenants should contact their Landlord for further information.

Right To Acquire
A scheme which gives some tenants of housing associations the right to purchase their home at a fixed discount rate depending upon the area in which they live. It is only available if the property was built or purchased with the use of Social Housing Grant or if it was transferred from a Council to a Housing Association on or after 1st April 1997. Housing association tenants should contact their Landlord for further information.

Please note that the above list is not exhaustive as different Housing Associations will have different schemes (and different names for the above) and are always introducing new ones. For further information please contact the Housing Corporation. This is the government body that monitors and approves grant for Housing Associations.

Your home may be repossessed if you do not keep up repayments on your mortgage, rent or any other loan secured upon it.  Make sure you can afford the repayments before entering into a credit agreement. We recommend that you take independent financial advice before proceeding with the purchase of a home through any of the schemes detailed on this web site.