Affordable Housing Policy Guidance consultation
Priority of the affordable housing tenures
The highest priority of the affordable housing tenures is social rent, with mid market rent being the second highest priority, and intermediate rent the third highest priority. Low Cost Home Ownership tenures are a lower priority and are only acceptable if there is a clear rationale for not delivering higher priority affordable rented housing tenures.
Funding constraints mean that a range of affordable housing tenures will be required to continue to deliver affordable housing on site and minimise the instances where payment of commuted sums are required.
A mix of tenures will be sought including social rent and, where social rent is not possible, other affordable rented tenures will be prioritised.
List of definitions
Social Rent housing is affordable rented accommodation, allocated according to need, owned and managed by public authorities (mainly councils) and/or housing associations (registered social landlords), and let with a Scottish Secure Tenancy.
Mid market rent housing is for rent to households on below average incomes. Rents for mid market homes are set lower than private rent but higher than Social rent housing, and starting rents cannot exceed Scottish Governments last published Local Housing Allowance levels for the area. Mid Market Rent homes are also managed by public authorities (mainly councils) and/or housing associations (registered social landlords) or subsidiary companies to registered social landlords. Homes are let with a Private Rented Tenancy.
Intermediate Rent housing provides an additional rental choice for low to middle income households. It provides longer-term accommodation at below market rents, and is owned and managed by private companies. Rents cannot exceed Scottish Governments last published Broad Rental Market 30th Percentile rents. Homes are let with a Private Rented Tenancy.
Low Cost Home Ownership housing is when the purchaser buys an agreed percentage of a property and the remaining stake is owned by someone else, such as the Council, a housing association or the developer.
Commuted Sums are a financial sum paid by a developer to the Council if affordable housing is evidenced as being unable to be provided on a site. This financial sum will then used by the Council to help provide affordable housing in the city.