“Affordable housing” is one of the most commonly used — and misunderstood — terms in planning and housing policy. It’s often used as a shorthand for “cheap homes,” but the reality is more complex and increasingly controversial.
đź’¬ The Official Definition (UK context)
According to the National Planning Policy Framework (NPPF), affordable housing refers to housing for sale or rent for those whose needs are not met by the market. It must be available at a cost below market rate, and its affordability must be retained in perpetuity or subject to subsidy recycling.
🔍 Key Types of Affordable Housing
- Social Rent
- The most affordable form
- Typically managed by councils or housing associations
- Rent is set using a national formula, usually around 50–60% of market rent
- Affordable Rent
- Introduced by government in 2011
- Rents can be up to 80% of market levels, making it less affordable in high-cost areas
- Still classed as “affordable housing” under government definitions
- Shared Ownership
- Buyer purchases a share (usually 25%–75%) and pays rent on the rest
- Intended as a “step on the ladder” but has been criticised for high combined costs and complex leasehold issues
- First Homes (New)
- Discounted market sale homes (minimum 30% discount for first-time buyers)
- Must be prioritised for local people, key workers, or younger residents
- A newer scheme with limited delivery so far
🧮 Is It Really Affordable?
Not always. In places like East Hampshire, where house prices are more than 13 times the average salary, even “affordable rent” and shared ownership are often unattainable for local families.
That’s why many campaigners argue the term “affordable housing” has become detached from real-world affordability — and should be more closely tied to income, not market discounts.
🎯 Why It Matters in Planning
Local councils (like EHDC) are required to secure a proportion of affordable housing in new developments — typically 35–40%, depending on the site. These homes are meant to:
- Meet local housing needs
- Support mixed and balanced communities
- Ensure that key workers, younger people, and those on lower incomes can remain in the area
But whether this promise is kept — and how developers comply — is a major issue in planning today.
👥 Who Needs Affordable Housing — and Why It Matters
The idea that affordable housing is only for “low income” households is outdated and misleading. In districts like East Hampshire, a growing share of the population is priced out of market housing, including:
- NHS workers, carers, teaching assistants, and emergency services staff
- Young people unable to rent or buy near where they grew up
- Families in overcrowded or temporary housing
- Disabled residents requiring accessible or specialist homes
- Elderly people downsizing but unable to afford appropriate options locally
Local Reality:
As of 2024, East Hampshire’s affordability ratio is 12.88 — meaning the average home costs over 12 times the average income. That makes even entry-level housing unaffordable to most residents unless they already own property or have external wealth.
Affordable housing isn’t a “bonus” — it’s essential infrastructure.
Without it, communities hollow out, public services suffer staffing shortages, and families are pushed into instability or long commutes. Yet, too often, affordable housing targets are treated as negotiable — or quietly eroded behind technical documents and planning jargon.