The Angus Local Housing Strategy 2017-22 committed to research the role for intermediate tenures across the whole of Angus. Intermediate tenures are alternative housing options for those on low to modest incomes, offering housing solutions for people that may not be able to afford a market solution and who may not receive priority for social housing. Intermediate tenures include:
Mid-Market Rent (MMR)
A form of accommodation where the rent is affordable, set lower than local private market rents but higher than a Council or Housing Association rent. Customers will be issued with a Private Residential Tenancy (like the agreements issued to private sector housing) offering security and flexibility should their circumstances change.
A typical 2 bedroom MMR property may cost up to £450 per month, meaning the occupant will require a household income of at least £21,600 per annum.
Shared Equity (SE)
This is where the customer buys a majority share in a property using a mortgage and the remaining share is purchased by another party (typically the Scottish Government, Council, or Housing Association). The customer retains outright ownership of the property and is responsible for repairs and maintenance.
This form of home-ownership requires savings to cover the deposit and associated purchase fees. Depending on the size of your deposit this could typically be around £7000 to £10,000.
The Survey
The survey was produced to gauge demand and customer appetite for these types of product across Angus. The survey was made available via social media as well as being issued directly to Common Housing Register (CHR) applicants who, since 2014, had used the Council's Housing Options Wizard to outline their housing requirements. There were 111 responses for which product feedback has been summarised below.
Demographics
- 77% of respondents were aged 25 to 54 yrs
- 85% were either one or two adult households
- 40% of applicants did not have children, and 29% have one child
- 42% of respondents live in private rented sector; and 27% rent from the council
Affordability
- 88% of respondents said they would be willing to pay a higher MMR for refurbished social housing property
- 90% said they would pay a higher MMR for a property in the right location, the right size and of better quality than social housing
- 82% believed these products should be aimed at working households
- a majority of respondents had a household income of at least £25,000 per annum
- 60% declared to have some form of savings, however just over half of these stated they had less than £2000
Location
Respondents identified the following factors as being most important in terms of location:
- proximity to schools
- good transport links close by
- near family/friends
- near green space
- near workplace
Property features
Respondents identified the following features as most important in terms of property features:
- meets the number of bedrooms for current housing need
- semi-detached property
- a private garden area
- car parking space
Important features
Respondents identified the following features as most important when choosing where to live:
- rent affordability
- security of tenure
- location
- quality housing
- good landlord
- good neighbourhood / safe and secure areas
Points of interest
- a majority of respondents were from smaller, working-age households that would require a maximum of two bedrooms
- 89% of respondents believed that the products should be made available in mixed tenure developments, including developments containing social housing
- respondents believed there should be notable differences in quality standards between social rent and MMR
- 55% said they would move to another Housing Market Area to access MMR or SE, suggesting that these products would be sought after
- over half of respondents had never heard of these products but they would welcome them, particularly MMR
- majority of interest shown in South & West Housing Market Areas
- demand for SE was also high but the practicalities (adequate savings for deposit/mortgage fees) revealed limited numbers
- a small snapshot of CHR applicants which suggests that these products would be well received
Data from the Council’s Housing Options Wizard suggests there are approximately 300 applicants with household earnings over £25,000 and over 180 applicants with earnings over £35,000 per annum.
There is likely be a number of pre-2014 applicants with sufficient household earnings to access either product.