Long-term affordability is often a key aim for community-led
housing groups. Here, we outline models which can facilitate
perpetual affordability.
You may already be familiar with freehold and leasehold, which
are the two main ownership options in the mainstream housing
market. However, these two tenures offer groups very little control
over the future prices of the property. It is therefore very
difficult to ensure affordability for future buyers.
Groups should therefore consider a wider range of options,
including rental and part ownership tenures, which can be tailored
to the unique requirements of the project.
Shared ownership
Shared Ownership is a part-ownership model where an individual
purchases a share of their home. The standard model, which
lenders understand, requires the individual to acquire a share of
between 25% and 75%. The individual pays a deposit, usually of 5%
or 10% of the share they are purchasing. This means the deposit is
lower than
