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Affordable housing scheme announced

Affordable housing scheme announced

Wates Living Space has announced its involvement in a new model of housebuilding that seeks to create affordable homes without the need for government subsidies.The first scheme will involve building 106 affordable homes in Doncaster, with a range of two, three and four-bedroom properties on offer. The project is being run as a collaboration between fund manager Octopus Investments and specialist developer QHS.To make the homes affordable, a number of payment options will be available to the people who want to live there, whether they prefer to rent or buy.The future residents will be able to purchase their homes through a rent-to-buy scheme, where half of their rent (set at affordable market levels) is put towards a mortgage deposit. This pathway will allow participants to save 10 per cent on the market value of their home, and they will be entitled to buy their home for the first ten years they live there. Those who prefer to rent will be entitled to affordable rent - defined as 80 per cent of market rates - for 20 years.The homes in the Doncaster development will be managed by St Lever, the local council’s arm’s-length management organisation.Affordable housing has been a major topic of public debate in recent years, as the UK’s growing population has outstripped its supply of new homes, resulting in substantial price increases. This is particularly true of London and the south-east of England.While the government has repeatedly stated its commitment to helping create more homes that are affordable for the average working person, it seems that some in the construction industry are keen to take the matter into their own hands, finding solutions that allow them to operate without the need to depend on state subsidies.Octopus QHS is already planning a further ten projects across the UK. 

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