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This section explains on this page, the need for affordable homes, how it can be achieved, as well as some links to press coverage and other searches on this topic. On other pages in this section what various people have had to say, are doing or say they are planning to do.
Where we have sufficient information we will try to put together an article for this site and have it linked (red background block). Our objective is, in most cases, however to give a brief description, and link to other information elsewhere (blue background ), should you wish to research it further. If you have heard of any project, or know of any other information we can link to, we would be grateful if you would let us know.
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On this page:- |
Information sourcesAffordable homes section of Self Build Homes Club UK site Google NEWS search for news for 'first time buyers UK' Google NEWS search for 'affordable homes UK' Google search for 'affordable homes UK' |
Why is there a need for affordable homesIts not the prices as such, that to most people present a problem, as the majority of people who cannot get a home of their own, can afford to rent and are paying in rent, considerably more than they would for the same home on a mortgage. The major reason why these people cannot get a home is that their income or combined income is not enough for them to qualify for a mortgage under the earnings multiplier rules used by lenders. The only way that many others have got around this is by following advice from lenders agents and lying about their income, so as to qualify for a non status mortgage, that needs no proof of income, has higher interest and usually requires a larger deposit. Many of those who cannot get a mortgage will have to rent privately off others, who are involved in the very profitable buy to let business. As the lenders providing buy to let mortgages often specify that the rent has to be set at a level of at least 130% of the mortgage payments, tenants end up not only paying the mortgage of the landlords but all their other costs as well, allowing many buy to let landlords to amass very large numbers of houses. From this you can see that a home could be bought for less than the rent, and that if the home can be bought at a considerable saving the mortgage will be far less than half of the rent. How some people have a nicer 5 bedroom home for the same price as others have a 3 bedroom home in the same area, now.You may have seen in newsagents and supermarkets, one of the three monthly magazines on self build, this is not about people actually doing the work in building a home but in organizing and commissioning others to do it for them. Most of these people are not struggling with the need to get a first home, they are often quite capable of buying a home in the area, but what they achieve is to build a larger and nicer home for the same budget. Just about all the magazine featured builds show a considerable saving, the average being around 40%, over the same home by other means. However most of these have involved the person in a lot of work, searching for plot and learning what to do in order to achieve it. Some of course have now built a number by this route while also having a full time job and after three can have a home with no mortgage at all. Some people rather than going it alone join a group or club, such as the Self Build Homes Club, and by this means make some extra savings, get help to understand, buy a site together and like anything even building plots are cheaper bought in bulk, have a project manager to run the build and sort out all the problems and by good buying save even more. You do not have to do any building work, and those who insist on getting involved in laboring or in some other way, usually increase costs by slowing others down. There are many outdated ideas around about self build, perhaps we should call them independent developers, as this is a better description today. Paying for their new home is not difficult as there are a number of lenders with special self build mortgages that lend 95% of the land and 95% of the build costs, paid out in stages, to line up with the payments needed. On completion of the build they often will lend 95% of the finished value which is far higher. So far 40% + saving, as a part of a group of independent developers (self builders). Cutting costs further for affordable homesAs we have seen above, costs can be cut often in excess of 40%, by becoming a part of a development group, referred to as 'self builders' . So how can we go further. The secret to this is in cutting the plot costs. There is no fixed formula as to how a plot is priced, but the effect of land being converted from agricultural land to building plots often results in a revaluation of £3000 an acre up to over a million pounds an acre. The reason is that although in Britain there is no shortage of land, there is a shortage of land on which building is currently being allowed. There are existing and planned projects to achieve this, covered in other pages within this section, as well as plans we have that are covered in the 'what we are doing now' section. Suggested next page projects available now |
BBC news items on affordable housing <2004> <2002 & 2003> last 2 months to 28/12/2004 Homelessness
'crisis' in the east 'Locals
only' homes to increase Key
workers struggling for homes South:
Housing by numbers Scheme
to tackle housing shortage 'Hotspots'
targeted for housing Prince
praises village homes plan Council
vying for Beacon status Housing
'prices out' rural people Executive
bans B&Bs for children County
has 'least affordable' homes Young
people's village homes plan Q&A:
Affordable housing project Plans
for affordable homes quota |