Chapter 4

Definition of affordable housing

4.1 For the purposes of this SPPG, affordable housing refers to housing that is of a reasonable quality and is affordable to local people on modest incomes. In this respect, East Renfrewshire Council will accept the following categories of development as falling under its definition of affordable housing.

4.2 Social Rented Housing – housing (that meets Varying Needs standards) provided at an affordable rent and usually managed locally by the Council, a Registered Social Landlord (RSL) such as a Housing Association, Housing Co-operative or other housing body regulated by Communities Scotland.

4.3 Shared Ownership – housing (that meets Varying Needs standards) where the owner purchases part of the dwelling and rents the remainder usually from a RSL. The owner can buy tranches of 25%, 50% or 75% of the property.

4.4 Shared Equity – housing (that meets Varying Needs standards) where the owner purchases part of the dwelling, with the remaining stake purchased usually by a RSL using Communities Scotland grant. Unlike shared ownership, the owner pays no rent for the equity stake which is retained by the RSL. While the RSL does not receive any rental income in respect of its stake, it benefits from any equity gain when the house is sold.

4.5 Discounted Low Cost Housing – housing (that meets Varying Needs standards) that is built with some form of public subsidy, for example GRO Grant, that is sold at a percentage discount of its open market value to households in the priority client group. Discounted serviced plots for self-build can also contribute particularly in rural areas. A legal agreement can be used to ensure that subsequent buyers are also eligible buyers. In rural areas this may be achieved through a rural housing burden.

4.6 Housing without subsidy – non subsidised affordable housing is likely to take the form of entry level housing for sale, some built at higher densities and with conditions attached to the missives designed to maintain the houses as affordable units to subsequent purchasers. Homes delivered without subsidy may be considered to fulfil part of the affordable housing requirement where it can be clearly demonstrated that they will meet the needs of, and be affordable to, groups identified through the housing needs assessment.

4.7 Private Below Market Rent Housing – private rented accommodation at a rental level agreed between East Renfrewshire Council and the private landlord to meet an identified need.