Two new neighbourhoods boasting hundreds of affordable homes is going to be built-in Newham, following a lb78m injection from Homes England.
London is a hotbed for house-building, however it can be tricky finding out about the very best new developments before the affordable homes get snapped up.
Here, we take at some of the new housing developments offering affordable homes around London.
What is reasonable housing?
The term ‘affordable housing‘ continues to be thrown around a lot lately, particularly in London where prospective buyers are stunted by sky-high house prices.
While it might appear simple at face value, affordable housing can actually take several different forms.
London Mayor Sadiq Khan provides funding to construct three main types of affordable homes:
London affordable rent
London affordable rent homes are equipped for low-income households located in London. That need considering ‘affordable rent’, the home can’t cost more than 80% of local market rents, including service charges.
The Manchester Authority (GLA) is responsible for benchmarking the maximum amount of rent that may be charged on a property so that it is deemed affordable.
These benchmarks are increased annually using the Consumer Price Index (CPI) way of measuring inflation for that previous September plus an additional 1%. The weekly rent benchmarks from 2022-18 to 2022-20 are provided within the table below:
|Bedsit and something bedroom||lb155.13||lb150.03||lb144.26|
|Six or even more bedrooms||lb200.73||lb194.13||lb186.66|
Source: London Assembly
London living rent
London living rent homes are for middle-income households who currently rent and wish to save up to buy a house.
Rent of these properties is calculated as being one-third of average earnings in each local authority according to ONS data.
This currently averages at lb1,000 a month for any two-bedroom home.
Shared ownership is really a scheme that allows you to buy a share of the property and pay rent on the rest. It’s made to help people on lower incomes, with small deposits, jump on towards the property ladder.
Where are affordable homes being built-in London?
We’ve rounded up several new-build housing developments working in london that will offer affordable homes.
Some properties will be ready when spring this season, so look out if you’re hoping to snap up a brand new home soon.
You may also take a look at our guide on buying a house or flat working in london for suggestions about securing a house within the capital.
1) Pocket Living affordable homes, various locations
Pocket Living is really a development company that creates affordable homes across London.
All of its properties are sold at least of 20% under the marketplace rate of a particular area – meaning that they satisfy the Mayor of London’s affordable housing criteria.
As of May 2022, the GLA has awarded Pocket Living a total of lb51.4m to provide a minimum of 1,059 new affordable homes towards the capital.
Pocket Living has already completed developments in Wandsworth and Ealing. Here is a round-up of a number of its new developments:
Addiscombe Grove, CRO
Addiscombe Grove is really a 21-storey building designed by award-winning architects Metropolitan Workshop in the middle of East Croydon.
Once completed, the expansion will offer 112 one-bedroom affordable homes including external gardens, bike storage and residents’ lounge.
Varcoe Road, SE16
A stone’s throw from London Waterloo, the Varcoe Road development will offer 57 one-bedroom affordable homes.
Residents from the complex will have access to a co-working space, sunroof, cycle storage and two landscaped communal roof terraces.
The development will even feature two accessible homes, which will be fully fitted for wheelchair users.
West Green Place, N17
West Green Place will offer you a combination of 98 one and two-bedroom homes.
Based near Turnpike Lane and Seven Sisters stations, residents is going to be near cafes, playgrounds and also the sports pitches of Downhills Park.
Whiting Avenue, Barking, IG11
The Whiting Avenue rise in Barking contains 78 new one-bedroom affordable homes.
Each home may have use of a cycle workshop, ample cycle storage as well as landscaped gardens with allotments.
2) Bow River Village, Tower Hamlets, E3
Bow River Village is situated between your A12 and also the River Lea, London’s second waterway, that was made famous by the London 2012 Olympics.
Previously comprised of industrial and warehouse buildings, the new development is due to bring 740 new homes towards the area, all of which will be available through the government’s Help to Buy scheme.
Phase One of the scheme has already been completed, delivering 219 homes along with a 10,000 sq . ft . commercial space.
Phase 2 of the scheme is going to be launching later this season and Phase 3 is going to be performed by 2022. Both phases includes a combination of homes for reasonable rent and shared ownership in addition to private rent and sale.
3) East Wick & Sweetwater, Newham, E20
Two new neighbourhoods will be built at London’s Queen Elizabeth Olympic Park by 2028.
The Sweetwater and East Wick communities will boast over 1,500 new homes, including 450 affordable homes.
New schools, green spaces, leisure and community facilities will also be built over both sites.
Work has going on phase among the development, which will include 130 new affordable homes, 105 web hosting rent as well as 33,000 sq ft of economic and creative space.
It’s anticipated that phase you will be carried out summer 2023.
Getting a mortgage in London
Trying to obtain a mortgage for any home in London can be very tricky, especially if you’re a first-time buyer. To be able to secure a home loan, you’ll generally require a deposit of 5% from the property’s value.
Despite house prices starting to dip in lots of London boroughs, they’re still over double that of the nation's average, meaning that if you wish to purchase a home within the capital you’ll need to save up a sizeable deposit.
Before you begin searching for properties, it’s important to work out how much you can borrow to obtain an idea of the homes you might be able to afford. Many lenders will lend a maximum of 4.Five times the combined annual incomes of you and other people that you simply buy with.
They’ll also take a selection of additional factors into account just like your creditworthiness, debts, average spending, whether you have any dependents along with other personal circumstances.
While some mortgage lenders will use automated systems to determine if you should grant a loan, others may be available to considering exceptional circumstances. Some lenders could be strict on the types of homes they’ll grant a loan on so, where possible, it’s also worth considering the home types to prevent if you want to obtain a mortgage to boost your odds of being approved.