Housing Development Strategy - Report - Page 18
Glossary
Term
Definition
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 definitions:
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.
Affordable Homes
Programme
Investment Programme to support development of new affordable homes by Government appointed Homes England
Affordable Rent
See Affordable Housing
Commuted Sums
Capital sums from private developers held by LA’s for supporting new affordable housing developments in lieu of providing
affordable housing on site
Compulsory
Purchase Order
(CPO)
An order issued by the government or a local authority to acquire land or buildings for public interest purposes. For example, for
the construction of a major road or the redevelopment of certain brownfield sites.
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