Affordable Housing

Homes that are owned, let, managed and maintained by a registered housing provider. Rents are charged lower than open market rents – often around 80%.

Affordable rent properties across Fylde are allocated via ‘my home choice’ made up of registered providers who hold housing stock across Fylde, Wyre and Blackpool. Affordable rent properties do become available on new housing developments depending on the tenure agreed for the affordable housing element of new developments – these are also allocated via my home choice.

Social rented housing is owned and let by local authorities and housing associations. These homes are offered at the lowest rents which are set by the Government for households on low incomes. At present social rented properties are not available in Fylde.

Social housing is let at low rents on a secure basis to those who are most in need or struggling with their housing costs. Normally councils and not-for-profit organisations (such as housing associations) are the ones to provide social housing. Limits to rent increases set by law mean that rents are kept affordable.

At present there are no social rented properties in Fylde – Fylde Council are proactively working to ensure that housing need is being met and when a social housing need presents work will take place in looking at the delivery of social housing in the borough.

This is where you purchase a share of the property (its equity) – generally between 25% and 80% and the rest is owned by the registered provider. A rent will be payable to the registered provider and is calculated based on the % of the property you do not own. The bigger share of the property you own the smaller the rent contribution would be. Generally you will be able to purchase more of the equity as you can afford to do so – the terms of your shared ownership is stipulated by the registered provider.

It allows you to take out a smaller mortgage than if you were buying the whole property.

A good homeowner option for:

• First time buyers
• Household incomes less than £80,000

AHO Updates

December 2022 (PDF) | February 2023 (PDF) | Combined (PDF)

This scheme works by you receiving an equity loan – to boost your deposit making it easier for you to purchase a property and secure a good mortgage. Shared equity or an equity loan is often offered direct via the developer.

There is the government backed scheme ‘help to buy’. You must have 5% deposit and the government will loan (Equity loan) you up to 20% of the purchase price. You would legally own 100% of the house but you will need to repay the equity loan within 25 years – if you sell the property the value of the loan is deducted from the sale price.

The Government appointed agent for the Fylde is Help to Buy North West provided by the Plus Dane Housing Group. For information on help to buy and how to access please visit www.helptobuy.gov.uk

A good homeowner option for:

• Securing a smaller mortgage but owning 100% of the property
• First time buyer

Discount Market Sale (OMV) is a low cost home ownership product for first time buyers, where a new build property is purchased at a discounted price. This discount is usually around 20% and the scheme is to help low and middle earners get onto the property ladder – household incomes below £60,000. These properties are available in partnership with the council at 20% below the current market value.

The eligibility criteria to access this affordable housing option is set and managed by Fylde Council. Eligibility is assessed on an application form which is required to be completed and issued to Fylde Council Housing Team who will assess your eligibility and if successful issue you with an official letter for you to provide to Developers who are offering Discount Market Sale properties.

Housing developers are required to provide 30% affordable housing on sites which are providing 10 or more dwellings as per our adopted local planning document . These can be delivered by a mix of different tenures:

• Shared Ownership
• Shared Equity
• Starter homes
• Discounted market sale
• Affordable rent
• Social Rent

The adopted tenures of affordable housing on a new development is assessed by the Housing team, on the presumption that of the overall 30%; 60% will be affordable rent and 40% intermediate housing. How this percentage is delivered is assessed using data received from the choice based lettings system and data collected in regards to housing need. Housing Needs Surveys are carried out to provide necessary information to allow the Council to facilitate the provision of relevant affordable housing.

In 2021 Fylde Council undertook a housing needs survey to us better understand the housing needs within the Borough.  The survey has been carried out across the whole of the Fylde Council area, along with smaller-area analysis for 10 sub-areas of the Borough.

The results can be downloaded by clicking here.

Your property is part of the affordable housing provision on the site and there are a number of requirements under a restrictive covenant on the discount to market property title.  Affordable housing is predominately for People who are unable to buy a home on the open market and people who want to rent a home but cannot afford the market rent.

Applicants must live in the property as their only and principal homes.  The discounted sale units are predominately for households who are first time buyers.  We will consider the personal circumstances of all applicants if they have a local connection to Fylde and due to exceptional hardship are unable to afford to access the open market.

It is therefore important for all applicants that we are able to confirm they have a local connection to Fylde and be able to make an assessment based on savings and income, whether or not they would be able to purchase a property off the open market without the assistance of the DMS scheme.

In terms of the resale process the following is required.

1. The open market value of the dwellings should be established. This should be through the mean of valuations by three independent RICS-accredited property surveyors or estate agent and should then be verified by the Council. The appropriate level of discount which on this unit is 20% or 25% shall then be applied to the open market value, to give the discounted market sale price. Please note this is a suggested marketed figure for the property and a formal RICS valuation is required as part of the covenant restriction. It is your decision if you wish to have a RICS valuation done or if you wish to provide 3 market valuations – but it is worth noting that ultimately you will need to have a RICS valuation completed before the resale of the property can be completed.
2. Discounted market sales properties will be marketed by an Estate Agent. Those who wish to purchase the properties will be required to fill in an application form that will be passed to the Council for an assessment as to their eligibility. Controls on eligibility are essential to ensure that the homes provide for those in affordable housing need, and in accordance with eligibility as detailed in MyHomeChoiceFyldeCoast Consistent Assessment Policy. MHC CAP 1.0 Final 2018.pdf (myhomechoicefyldecoast.co.uk).
3. When you have chosen the Estate Agent you wish to use to sell your property if you can advise, we will liaise with them to provide the Application Form prospective buyers need to complete.
4. Once purchased, a discounted market sale property is the absolute property of the purchaser, but restrictions are put in place so that on resale, the property may not be sold for more than the open market value minus the same discount that was applied initially, and that the subsequent purchaser will also be eligible for affordable housing, in accordance with eligibility as detailed in MyHomeChoiceFyldeCoast Consistent Assessment Policy . The developer or estate agent must provide information to the purchaser so that the restrictions are clearly understood, notwithstanding any legal enquiry that the purchaser may also carry out.
5. Local residency eligibility:
   1. they have lived in local authority of Fylde consecutively for the last three years;
   2. Permanent employment in the area of Fylde or offer of permanent employment that is intended to last for at least 12 months;
   3. Close family association – has a parent, adult child, adult brother or sister who is living in the area of Fylde and has done for the last 5 years;
   4. Applicants who are serving in the Armed Forces and who are either employed or are resident in the area of Fylde; and
   5. Former armed forces personnel who had a previous residence in the area of Fylde as a result of a former posting in the area of Fylde within the last 5 years.

In order to ensure the covenant title restrictions for the property are complied with there are a number of charges as part of the re-sale process payable to Fylde Council.

1. Processing purchaser application (s) to check eligibility and the discounted market rate is reflected in the re-sale = £315.
2. Once a sale is agreed a formal RICS market valuation report of the unit will be required in order to comply with the covenant restrictions on the property.  If you wish Fylde Council to undertake this instruction on your behalf there will be a charge of £200 plus VAT (£240 inclusive of VAT).  You can arrange for this to be done independently.
3. Estate & Asset Management and Legal Services fees in order to approve the RICS market valuation and ensure the restrictive covenant on the unit has been complied with as part of the re-sale of £350

Please see information below regarding the fees introduced for resale of DMS properties.

CMIS > Meetings Calendar  Jan 2021 fees were set up for processing purchaser information to comply with the covenant 2021/22.

CMIS > Meetings Calendar  Jan 2022 fees were revised to reflect the RICS valuation and estate and legal services processing 2022/23.

The information regarding the fees in detailed under the Budgeting subheading.