Affordable housing

Low Cost Home Ownership 

Low-Cost Home Ownership (LCHO) describes a form of intermediate housing which bridges the gap between social rent and open market properties. LCHO has many forms including shared ownership, shared equity and discounted sale.  

Shared ownership 

Properties, usually sold by a Housing Association, where a share of between 25 per cent and 75 per cent is purchased and rent is paid on the remainder. Over time it is possible to purchase more equity in the property 

Shared Equity 

Shared Equity schemes allow you to combine a small deposit with a lower-than-average mortgage size by providing you with an ‘equity loan’, covering a percentage of the property’s value. 

You might start to repay the equity loan gradually after a set number of years - or in full, including when you come to sell the property. 

The value of your equity loan generally fluctuates with the value of your property, so the amount you’ll pay depends on the value of the property at the time you repay. 

Discounted Sale

Discounted Sale schemes seek to ensure properties remain within reach of households on local incomes. Unlike some other forms of affordable housing, such as shared ownership, with discounted sale properties the purchaser owns their home outright. This means no other party retains a share of the equity, but the initial price and each re-sale is subject to the same percentage discount. 

Further information on Discounted Sale schemes is available.