Are you struggling to buy a home, even though you could afford to pay a mortgage? You may eligible to buy an ‘affordable home’ – homes sold by developers below the open market value to those on average incomes for the area.
Affordable homes are aimed at people who can get a mortgage and earn an average income, but cannot afford to buy a suitable home at open market prices. They’re usually sold on a shared equity basis – this means that you would buy a percentage share of the home, and we - or a Housing Association – will own the remaining share of the home (up to the market value).
To be eligible, you must live or work full time, in Carmarthenshire, or have a long standing local connection to Carmarthenshire, such as immediate family within the area. Your income before tax should be a minimum of £15,000 a year. This figure can include benefits other than Housing Benefit. Priority is given to council and housing association tenants.
NO – they are for anyone who cannot afford a home to meet the needs of their family on the open market. For instance a family with a disabled family member may have a home which is not able to be adapted, and may not be able to afford a more suitable home without help. A householder may have bought previously with another partner but due to a relationship breakdown has had to sell their home and wishes to purchase again but cannot do so on the open market.
You must be registered on our affordable homes register. We will contact you to let you know about opportunities coming up in areas of the County you are interested in.
If you are interested in a particular development, we will ask for further financial details from you including a mortgage certificate. We will then prioritise households according to our affordable housing allocations policy. We will write to let you know if you have been successful and the next steps you will need to take.
Yes – As many new affordable homes as possible will be offered for sale while they are still being built. That way the sale can be agreed well in advance, and you can move in as soon as the home is ready for occupation. It may also give you a chance to agree any choices the building contractor will offer such as solar panels or choices of kitchen suite.
Yes – The home can only be sold according to the legal agreement you signed when you bought your home.
Typically conditions include:
- The percentage amount you can sell your home for
- It can only be sold to someone who we approve as needing an affordable home
- Residence requirements for the new owner to be living or working within Carmarthenshire.
No – we will keep our percentage in order that the affordable home remains affordable for future applicants.
YES – for example if you have bought a 2 bed home under an affordable scheme and your family increases in size, we would consider you for a 3 bed affordable home providing you sell your current home under the affordable criteria.
However as with the open market of purchasing and selling a home this creates a ‘chain’ so we cannot always guarantee that you will be able to sell your home at the same time as we are able to offer you another one.
NO – your percentage share which you have borrowed is what you will pay back to the mortgage company. You do not pay any rent on top of this amount. However, you cannot purchase our share of the home to increase your shared equity.
The council’s share will remain with us indefinitely in order to make sure the home remains affordable in the future.