SWEDEN
We hear much about affordable housing in the borough of Waverley and how it is so desperately needed.
What is an affordable home?
If you look on the developer’s website selling homes in the former Alfold Garden Centre, you will no doubt find that its definition of an affordable home there is... £715,000!
Villager Mary Harvey said recently:
Alfold Gardens is close to finished. One of the adverts states that 30% of these houses are “affordable”. In what reality is £715,000 affordable? There is not one single house on that development that is actually needed. Anyone who can afford the asking price of £715,000 to £1,650,000 is not in need of a house. Buyers want, not need. Alfold wants and needs fewer developments and mini estates until at least the basic local infrastructure can catch up
So here’s a perfect example of how STUFFED we are in the UK!
A young couple in Sweden ( 26 and 23 years old) lives in a major city like Gothenburg. Both have a reasonable average salary of around 70k combined and have just accepted an offer on this flat.
https://www.hemnet.se/bostad/lagenhet-2,5rum-klippan-goteborgs-kommun-klippan-1g-21170677
Anna & Jesper, her partner, just had their offer accepted.
So the flat cost is 215 K, the deposit is 65K, and they repay at
under 1%
Bank of Mum and Ad and all that, but honestly.
So, a 30% downpayment at under 1%!
Meanwhile, here in the in the UK
Definition of affordable will vary from person to person depending on how much they earn or are able to save. The properties for sale in Alfold are certainly NOT affordable for anyone on the average income in the area unless they happen to be lucky enough to either have a property to sell or have been left a reasonable sum of money.
Every house is affordable IF you’re lucky to earn £150,000 per annum and have savings of around £350,000.
When a developer says affordable housing they are selling a tiny proportion at 30% below what they want to sell their properties for and that certainty doesn’t mean that they are affordable housing
30% refers to the proportion of the homes in a development that should be Affordable. The definition of Affordable is 20% below market price. The affordables are normally lower floor area and clustered near the main road. Evidence from previous local developments is that most houses go to second homers, buy-to-let landlords, and downsizer or upsizers.
No wonder nobody knows exactly what constitutes AFFORDABLE HOUSING. In the Revised NPPF (Dec 2023) Details below I thought that not only did WBC expect 30% of the Housing to be Affordable but that meant 30% Below Market Price… Obvs not???
“Annex 2: Glossary
Affordable housing: housing for sale or rent, for those whose needs are not met by the
market (including housing that provides a subsidised route to home ownership and/or is
for essential local workers); and which complies with one or more of the following
definitions81:
a) Affordable housing for rent: meets all of the following conditions: (a) the rent is set in
accordance with the Government’s rent policy for Social Rent or Affordable Rent, or is
at least 20% below local market rents (including service charges where applicable); (b)
the landlord is a registered provider, except where it is included as part of a Build to
Rent scheme (in which case the landlord need not be a registered provider); and (c) it
includes provisions to remain at an affordable price for future eligible households, or
for the subsidy to be recycled for alternative affordable housing provision. For Build to
Rent schemes affordable housing for rent is expected to be the normal form of
affordable housing provision (and, in this context, is known as Affordable Private Rent).
b) Starter homes: is as specified in Sections 2 and 3 of the Housing and Planning Act
2016 and any secondary legislation made under these sections. The definition of a
starter home should reflect the meaning set out in statute and any such secondary
legislation at the time of plan-preparation or decision-making. Where secondary
legislation has the effect of limiting a household’s eligibility to purchase a starter home
to those with a particular maximum level of household income, those restrictions
should be used.
c) Discounted market sales housing: is that sold at a discount of at least 20% below
local market value. Eligibility is determined with regard to local incomes and local
house prices. Provisions should be in place to ensure housing remains at a discount
for future eligible households.
d) Other affordable routes to home ownership: is housing provided for sale that
provides a route to ownership for those who could not achieve home ownership
through the market. It includes shared ownership, relevant equity loans, other low cost
homes for sale (at a price equivalent to at least 20% below local market value) and
rent to buy (which includes a period of intermediate rent). Where public grant funding is
provided, there should be provisions for the homes to remain at an affordable price for
future eligible households, or for any receipts to be recycled for alternative affordable
housing provision, or refunded to Government or the relevant authority specified in the
funding agreement.”
Swedish style housing require Swedish taxation.