Affordable housing Types of affordable housing

Shropshire Council is committed to providing a mix of good quality, sustainable housing developments of the right size, type, tenure and affordability to meet the housing needs and aspirations of all sections of the community, including provision for specialist needs and the elderly.

Affordable homes can be for either affordable, discounted or social rent or low-cost home ownership, such as shared ownership or discounted market sale.

More information on each of these tenures can be found in our supplementary planning document.

Social rent

These are rented homes owned by registered providers and local authorities. This type of housing is let at a low rent on a secure basis to those in housing need. The social housing sector is governed by a strict system of control to ensure rents are kept affordable. 

Affordable rent

Our homes are let by registered providers and local authorities at a rent of no more than 80% of the local open market rent or the Local Housing Allowance. These are subject to rent controls and let to eligible people.

Discounted rent 

We recognise that private landlords, landed estates, community land trusts, development companies and registered providers may want to provide rented affordable housing in Shropshire, these must be let in accordance with Shropshire Council's allocations policy and be no more than 80% of the open market rent or the Local Housing Allowance. 

To apply for any of these tenures you must be registered on Shropshire Council's housing register, which you can join on the Shropshire HomePoint website.

Shared ownership/part buy-part rent

If you are unable to afford to purchase a property outright, you can part-buy and part-rent your home. 

You can buy the percentage you can afford, whether this is 10%, 25%, 50% or a 75% share in your home. You pay rent on the share you don’t buy, and the rent is usually set at an affordable level of 2.75%. The bigger share you own, the less rent you pay. Some schemes enable you to increase your ownership - this is called staircasing. You can find more information about shared ownership on the GOV.UK website.

Discounted market sale

The discount sale (DMS) model allows you to buy 100% of a property that has been identified as an affordable dwelling by Shropshire Council on an open market site, but at a substantial discount off the open market value. Our policy is 60% of the open market value. The buyer obtains a mortgage for the discounted price but doesn't pay rent on the remainder. If you buy a discount sale property you cannot purchase any shares in the property as it's a 'fixed equity' home.

When you sell your home, you'll have to sell it at the same discount percentage at which you bought it. Your home must be sold to someone who is unable to afford a home on the open market. You can find more information about this on our sales and re-sales of affordable homes page.

Registered providers (RP) 

RP’s are key to the delivery of affordable housing. They're independent housing organisations registered with Homes England (HCA) under the Housing Act 1996. Most are housing associations, but there are also trusts, co-operatives, charities and companies. They're usually run by a board of management. 

RP’s provide access to a range of types of homes, including houses, flats and bungalows, to suit the needs of the individual. 

Homes England (HCA)

Homes England grant funds registered providers or developers to develop local needs affordable homes. The RP receives grant from the HCA to add to their own funds so that they can develop a site themselves or purchase houses from a developer on an open market site. Homes England would also consider grant-aiding the extra provision of affordable housing on a site or even converting unsold open market stock to affordable housing.