When is 'affordable' housing not affordable?

[Moghrey Mie]

https://www.manxradio.com/news/isle-of-man-news/impossible-to-calculate-market-value-for-affordable-housing/

They confuse themselves and others by referring to 'affordable' housing when they mean council houses, local authority houses and DOI owned houses.

[2112]

Manx Muddle as usual. 
 

However the cynic in me suggests it’s convenient for the confusion, blurred and mixed messages, by the DoI as it aids the developers. 
 

It’s not affordable when, people simply don’t earn enough to afford a mortgage, they can’t find a property within their price range and meets their criteria. 

Edited Thursday at 10:32 AM by 2112

[Non-Believer]

[Moghrey Mie]

So does Section 13 'affordable housing' mean council housing and local authority housing or housing that somebody on the average wage can afford?

'4.0 Content of 13 Agreements 4.1 Affordable Housing Guidance may be sought from the Department of Infrastructure and the relevant Local Authorities in relation to the provision of affordable housing – in particular the type of affordable housing and whether provision is on or off-site. The level of detail that is necessary in the actual agreement will vary on a caseby-case basis. Where provision is made on-site and 25% would result in a fraction of a house (e.g. a development of 17 houses would result in a requirement of 4.25 affordable units) the remainder (i.e. 0.25 of a unit) should either be reflected in a commuted sum to contribute to off-site provision or rounded up and provided onsite as a unit. Where provision is offsite and so the developer is to make a financial payment, the requirement will not need to be rounded up or down. ‘Credit’ will not be given for previous developments by a developer in an area which included more than 25% affordable housing. In exceptional circumstances where affordable housing would be better located in one area rather than another (e.g. close to amenities) it may be appropriate to link two separate developments together through one or more S13 agreements. However it is important that the decision on a specific planning application does not prejudice any future decision on a planning application.'

Have there been any private developments where 25% of the houses are 'affordable' ie local authority houses?

Edited Thursday at 11:59 AM by Moghrey Mie

[Barlow]

Affordable housing?

I would say, back of fag packet, based on interest only repayment.:

Average wage = £36,000pa

Budget 33% of income for mortage/rent = £12,000pa

At mortgage rate 5% this is repaying interest on a loan of £240,000

So a £240,000 is an affordable property.

Flies in the ointment of this scenario is that prospective house buyers will need a to find a deposit of £24,000. They will also need to budget a third of their salary for mortgage, plus capital repayment. Which will mean cutting down on Costa coffee, annual/all holidays and the latest iPhone, fancy car etc. 

 

 

Edited Thursday at 12:43 PM by Barlow

[english zloty]

3 hours ago, Moghrey Mie said:

https://www.manxradio.com/news/isle-of-man-news/impossible-to-calculate-market-value-for-affordable-housing/

They confuse themselves and others by referring to 'affordable' housing when they mean council houses, local authority houses and DOI owned houses.

Looks like someone who doesn’t know what they are doing has tried to answer the question 🫡

[Non-Believer]

49 minutes ago, Moghrey Mie said:

So does Section 13 'affordable housing' mean council housing and local authority housing or housing that somebody on the average wage can afford?

'4.0 Content of 13 Agreements 4.1 Affordable Housing Guidance may be sought from the Department of Infrastructure and the relevant Local Authorities in relation to the provision of affordable housing – in particular the type of affordable housing and whether provision is on or off-site. The level of detail that is necessary in the actual agreement will vary on a caseby-case basis. Where provision is made on-site and 25% would result in a fraction of a house (e.g. a development of 17 houses would result in a requirement of 4.25 affordable units) the remainder (i.e. 0.25 of a unit) should either be reflected in a commuted sum to contribute to off-site provision or rounded up and provided onsite as a unit. Where provision is offsite and so the developer is to make a financial payment, the requirement will not need to be rounded up or down. ‘Credit’ will not be given for previous developments by a developer in an area which included more than 25% affordable housing. In exceptional circumstances where affordable housing would be better located in one area rather than another (e.g. close to amenities) it may be appropriate to link two separate developments together through one or more S13 agreements. However it is important that the decision on a specific planning application does not prejudice any future decision on a planning application.'

Have there been any private developments where 25% of the houses are 'affordable' ie local authority houses?

If recent history shows anything, it's that developers are allowed to "buy themselves out" of any obligation to build "X" amount of AH on approved developments. Obviously this does nothing to help the candidates on the waiting lists for AH but hey ho, it's revenue for the Govt.

[Tinpot]

54 minutes ago, Barlow said:

Affordable housing?

I would say, back of fag packet, based on interest only repayment.:

Average wage = £36,000pa

Budget 33% of income for mortage/rent = £12,000pa

At mortgage rate 5% this is repaying interest on a loan of £240,000

So a £240,000 is an affordable property.

Flies in the ointment of this scenario is that prospective house buyers will need a to find a deposit of £24,000. They will also need to budget a third of their salary for mortgage, plus capital repayment. Which will mean cutting down on Costa coffee, annual/all holidays and the latest iPhone, fancy car etc. 

 

 

If we take that example, the salary quoted sounds similar to a guy at work (who is married to someone probably on about the same) who says he can’t afford the deposit.

He drives to and from work in a nearly new BMW which would sell for at least £25k, she has a two year old Mini.  They currently rent a three bed house which based on similar ones you see listed must be £1300 ish a month.

Sell the cars and get a mortgage and stop moaning FFS

[Nom de plume]

There would be a lot more affordable housing if non-residents were heavily taxed on the sale of their 'nest eggs' here, better still severely restricted on buying in the first place. 

Successive Governments have allowed the property market to inflate beyond the means of many.

[Tinpot]

5 minutes ago, Nom de plume said:

There would be a lot more affordable housing if non-residents were heavily taxed on the sale of their 'nest eggs' here, better still severely restricted on buying in the first place. 

Successive Governments have allowed the property market to inflate beyond the means of many.

Any figures to back this up?

An Estate Agent friend whenever I speak to him says the influence of off island investors on our property market is greatly overstated by people and isn’t really a factor.

Its an easy one for people to trot out, but I am yet to see evidence to back it up, or hear it given as a factor by anyone in the know.

[Nom de plume]

5 minutes ago, Tinpot said:

Any figures to back this up?

An Estate Agent friend whenever I speak to him says the influence of off island investors on our property market is greatly overstated by people and isn’t really a factor.

Its an easy one for people to trot out, but I am yet to see evidence to back it up, or hear it given as a factor by anyone in the know.

It would be a fantastic FOI request.

How many properties on the IOM are owned by non-residents.

Ironically it was an Estate Agent who told me that overseas owners were part of the problem - go figure?

Edited Thursday at 02:15 PM by Nom de plume

[Tinpot]

1 minute ago, Nom de plume said:

It would be a fantastic FOI request.

How many properties on the IOM are owned by non-residents.

I will take that  as a no then.

 

14 minutes ago, Nom de plume said:

There would be a lot more affordable housing if non-residents were heavily taxed on the sale of their 'nest eggs' here, better still severely restricted on buying in the first place. 

Is just a hunch with no evidence to back it up.

[Nom de plume]

Just now, Tinpot said:

I will take that  as a no then.

 

Is just a hunch with no evidence to back it up.

You have evidence on the contrary?

I'll take that as a no then?

 

[Passing Time]

1 hour ago, Nom de plume said:

It would be a fantastic FOI request.

How many properties on the IOM are owned by non-residents.

Ironically it was an Estate Agent who told me that overseas owners were part of the problem - go figure?

Think I'll take your word over Tinpot's usual drivel...

[Banker]

6 hours ago, Moghrey Mie said:

https://www.manxradio.com/news/isle-of-man-news/impossible-to-calculate-market-value-for-affordable-housing/

They confuse themselves and others by referring to 'affordable' housing when they mean council houses, local authority houses and DOI owned houses.

I understand that affordable housing is that sold at heavily discounted prices to first time buyers on proviso they can’t sell before 10 years or they have to pay financial penalties to DOI