Right Place Right Price

Choosing and paying for your home

2016 Edition

Right place Right price This guide helps you make the right choice about a Soha Housing home. Updated each March, it sets out the different sorts of homes we offer, and how they compare on price in different areas – to buy or rent, to live in and look after.

Your home is likely to be the biggest item in your budget – so choose well and make sure it’s the right place at the right price.

Contents A home you can afford

3

Types and costs of homes 4 Renting 5 Places and prices

6/7

Buying 8

Two

households a day find a

home they can afford

with Soha

Right to Buy

9

Homes with support

10

3

A home you can afford

Don’t forget the extras

Homes are expensive. Costs for most types of properties have increased sharply in recent years and are expected to carry on rising. Soha Housing is committed to doing all it can to help make homes affordable.

Service charges, furniture, carpets and curtains, gas, electricity, water, phone, broadband, TV, Council Tax, maintenance, wear and tear, buildings insurance, contents insurance.

We work in one of the UK’s housing hot spots. Average private house prices in Oxford City are more than 15 times local people’s average yearly incomes, with average private market rents equal to more than two thirds of the average monthly income after tax.

Whether you rent or buy, you need to allow for the other costs of moving and living in a home.

To provide good quality homes that people can afford, we: l B  uild new properties for affordable rent and low-cost shared ownership (more than 680 new homes completed in the last two years)

£373,543 average cost

l O  ffer free financial and budgeting advice to existing customers and people considering a Soha Housing home

£1,389 average monthly

l S  upport customers in debt with mortgage, rent or service charge arrears, through interest-free repayment plans, attachment of earnings and direct payment of benefits.

of a three-bedroom home in Oxfordshire

private market rent for a three-bedroom home in Oxfordshire1

This online map and calculator shows how house prices vary across the country: www.bbc.co.uk/news/business-23234033

£30,316 average

gross annual income in South Oxfordshire

Source: Zoopla, February 2016 / Office for National Statistics Annual Survey of Hours and Earnings November 2015

1

The Government’s free Money Advice Service has some handy tools to help you estimate these extra costs (www.moneyadviceservice.org.uk/en/ tools/budget-planner) and plan your household budget (www.moneyadviceservice.org.uk/en/ articles/estimate-your-overall-buying-andmoving-costs). Once you’ve done this, you know how much you can afford. Check out the rest of this guide to find out more about your options and the best choice for you.

Everyone’s different The figures on housing costs and incomes used in this guide are based on published local averages, so may not match your individual circumstances. For example, monthly costs for shared ownership will depend on the property, your circumstances and the type of mortgage you take out. To get an exact picture of what sort of home you can afford and suits you best, please contact us or get independent financial advice (see page 8).

4

Right place Right price

Types and costs of homes We offer four main types of homes to suit different needs and budgets.

Social rent (see page 5)

For tenants of rented homes mainly built before 2011. Rent is calculated using a government formula.

£571

Average monthly social rent for a three-bedroom Soha home

Shared ownership

(see page 8)

Buy a share (typically from 50%) of a home, and pay an affordable rent on the rest

£1,155

2

Monthly combined 50% mortgage and 50% rent for a three-bedroom Soha home

Homes with support

(see page 10)

Mainly for people aged over 55

Affordable rent

£425

For tenants of most rented homes built since 2011. Rent is set at 80% of market rent at the point of letting.

£628 Average monthly cost of a

(see page 5)

£804

Average monthly affordable rent for a three-bedroom Soha home

2

Private rent or buy

Average monthly cost of a one-bedroom Soha sheltered flat, including service charges

one-bedroom Soha extra care rented flat, including service charges

£625

Monthly cost of a typical two-bedroom Soha extra care shared ownership flat, including service and core care charges, with 50% outright purchase

Based on buying a 50% share, with a 5% deposit and 25-year mortgage at 4.5%pa, plus 50% affordable rent for a home in Didcot, South Oxfordshire

Homes for private rent or sale are available at market levels through local agents and online sites like Zoopla (www.zoopla.co.uk) and Rightmove (www.rightmove.co.uk).

Help with housing costs If you’re on a low income or receive some welfare benefits, you may be able to get help with rent through Housing Benefit (www.gov.uk/housing-benefit) or Universal Credit (www.gov.uk/universal-credit). If your circumstances change as a shared or outright owner, you may be entitled to help with mortgage interest costs – see www.gov.uk/support-for-mortgageinterest To claim a reduction in your Council Tax because you are on a low income, please contact your local council and see www.gov.uk/apply-council-tax-reduction Some councils have deposit guarantee schemes to help with the cost of a deposit for renting a home in the private sector (for example www.southoxon.gov.uk/servicesand-advice/housing/help-and-advicerenting-home/deposit-guarantee-scheme). Please check the website for your local authority. Soha Housing does not charge deposits for any of its rented homes.

5 Things to think about

Renting We offer good quality, well-maintained homes in Oxfordshire, Wiltshire and West Berkshire, at or below local market rents.

Social and affordable rent Homes for social and affordable rent are advertised through the choice-based lettings scheme for each district council (for example, South Oxfordshire HomeChoice: www.southoxfordshirehomechoice.org.uk).

Rightmove has a useful guide to renting: www.rightmove.co.uk/ resources/property-guides/ renting-guide.html

42% lower

Or see our website for more advice about managing your money if you rent a home: www.soha.co.uk/my-money

Swapping your home

Soha affordable rent for a three-bedroom home compared to average private rents in Oxfordshire

If you live in a social or affordable rented home, you may be able to swap or exchange your home with another Soha resident, or a tenant from another housing association or council through the national Homeswapper scheme: www.soha.co.uk/move-or-swap-a-home

You will need to join the housing register for each area – Soha Housing does not keep its own waiting list for this type of housing.

To use HomeSwapper, you must: l have a clear rent account,

How our rents compare This table shows how monthly costs for different types and sizes of Soha Housing homes compare to private renting.

Size/type of home

1 bed

Average monthly Soha social rent*

£410

Average monthly Soha affordable rent*

£547

Average monthly private rent in Oxfordshire

£827

*Including charges for shared services such as communal gardening and cleaning

2 bed

£471 £667

£1,156

3 bed

£571 £804

£1,389

4 bed

£663 £1,001

£1,871

l  not be in the 12-month starter period of your tenancy, l  not have any tenancy enforcement or court actions outstanding, l  exchange with a property that’s suitably sized for your needs, and l  be able to afford the rent and service charges for the new property.

6

Right place Right price

Places and prices This map shows where our properties are currently located and the typical monthly costs to rent or buy a three-bedroom home, compared to average earnings in each district.

Number of homes

Monthly cost of 3 bed home

Social rent*

35

£700

Affordable rent*

11

£848

Shared Ownership

40

n/a***

West Oxfordshire

86

Average monthly income before tax: £2,392

Number of homes

Monthly cost of 3 bed home

Social rent*

166

£597

Affordable rent*

156

£787

Shared Ownership

111

n/a***

Vale of White Horse

Total Soha homes in district

Total Soha homes in district

433

Average monthly income before tax: £2,678

Number of homes

Monthly cost of 3 bed home

Social rent*

165

£535

Affordable rent*

41

£798

Shared Ownership

76

£844**

Swindon and Wiltshire

Total Soha homes in district

282

Average monthly income before tax: £2,440 *Rent figures include charges for shared services. **Based on 50% share with 5% deposit and full repayment mortgage at 4.5% over 25 years, including fees and 50% affordable rent.

*** No new, shared ownership homes currently available in this area. **** Currently no three-bedroom homes for this type of tenancy in this area.

Number of homes

Monthly cost of 3 bed home

Social rent*

14

n/a****

Affordable rent*

21

£765

Shared Ownership

15

n/a***

Cherwell

7

Total Soha homes in district

50

Average monthly income before tax: £2,362

Oxford City

Number of homes

Monthly cost of 3 bed home

Social rent*

82

£675

Affordable rent*

2

n/a****

Shared Ownership

23

n/a***

Total Soha homes in district

107

Average monthly income before tax: £2,513

Number of homes

Monthly cost of 3 bed home

Social rent*

4136

£564

Affordable rent*

145

£848

Shared Ownership

286

£1,155**

South Oxfordshire

Average monthly income before tax: £2,526

Total Soha homes in district

4,567

8

Right place Right price Help to Buy and Starter Homes

Buying

Help to Buy is a Government scheme to help households with annual earnings below £80,000 become homeowners. It offers help with deposits and tax-free savings to support first-time buyers of private homes.

We’ve already helped more than 600 people to become homeowners through low-cost shared ownership.

Your money You should always take independent financial advice before deciding to buy a home. To find an adviser, see www.apfa.net/APFA/Consumers/ Find_a_financial_adviser.aspx The Government’s free Money Advice Service has a useful guide and online mortgage calculator: www.moneyadviceservice.org.uk/en/tools/housebuying/mortgage-affordability-calculator

Shared ownership Shared ownership is a stepping-stone between renting and full homeownership. You buy a share of a home with us (usually 50–75%) and pay an affordable rent on the rest. You can then ‘staircase up’ to buy further shares in your home, until you own it outright. The combined monthly cost of the rent and mortgage will usually be less than buying on the open market. For more details, see www.soha.co.uk/shared-ownership Not all mortgage providers offer loans for shared ownership, so be sure to use a lender that’s experienced in this type of housing.

For our approved list of mortgage advisors, see www.sohahomeownership.co.uk/Content/ What-is-Shared-Ownership/Legal--Financial.aspx

How our prices compare This shows how typical monthly costs for different types and sizes of Soha Housing homes compare to buying in the private market. Size/type of home

2 bed

3 bed

Monthly Soha shared ownership*

£1,030

£1,155

Average monthly private sale in Oxfordshire **

£1,046

Monthly cost of Soha shared ownership part buy/part rent for a 3-bedroom home compared to average private purchase in Oxfordshire

£1,417

18% lower

*Based on 50% share with 5% deposit and full repayment mortgage at 4.5% over 25 years, including fees, and 50% affordable rent for a home in Didcot, South Oxfordshire. **Based on 80% repayment mortgage at 3% over 25 years, including fees, excluding service charges.

Help to Buy Schemes can allow you to: l Get up to £3,000 from the Government to help you save to buy a home l Buy a new home with a deposit of just 5% of the price and a mortgage of up 95% l  Get a Government equity loan on a newly built home to pay for a deposit of up to 20%. For more details see www.helptobuy.gov.uk as schemes can change from time to time. Radian Group runs the Help to Buy scheme in the South: www.helptobuysouth.co.uk The Government’s Starter Homes scheme allows first-time buyers aged under 40 to buy a new home at up to a 20% discount. The scheme is run directly by private housebuilders – see www.new-homes.co.uk/starter-homes

9

Right to Buy If you rent a Soha Housing property you may already have the right to buy your home at a discount.

Preserved Right to Buy If you were a South Oxfordshire District Council tenant before Soha Housing was formed in 1997, you may have the preserved Right to Buy. Discounts range from 35% (for houses) or 50% (for flats) up to a maximum of 70% or £77,900. Certain types of homes (for example, sheltered housing for older people) are exempt from the Right to Buy.

An example of buying a house under preserved Right to Buy If you buy a flat under Right to Buy, you will still have to pay the charge for any shared services (for example communal gardening and cleaning).

Current Value £300,000 Time as tenant 19 years Eligible discount 54% (35% plus 1% for

each year over 5 years)

Discount value £77,900 (maximum) Price to pay £222,100 (£300,000

less maximum discount)

New Right to Buy for housing association tenants The Government has launched a pilot scheme to offer some housing associations tenants the Right to Buy their homes at a discount. It plans to extend this nationwide during 2016. We will publish details of how the new right affects Soha Housing tenants as soon as details of the new scheme are finalised, and you can sign up to receive details via our website at www.soha.co.uk/right-to-buy The discounts for the new Right to Buy are expected to be the same as for the Preserved Right to Buy, with discounts depending on how long you have been a tenant. The Government has a useful online tool to check if you are likely to be eligible: https://righttobuy.communities.gov.uk/ am-i-eligible/eligibility-quiz/ and how much discount you could receive: https://righttobuy.communities.gov.uk/ right-to-buy-calculator/ For more details, see: https://righttobuy. communities.gov.uk/agent-service/

10

Right place Right price

Homes with support

Help to Buy and Starter Homes One and two-bedroomed homes with extra care are also available for shared ownership. Most people buy a 50% or 75% share outright, then pay an affordable rent, plus service and care charges. It’s an ideal option for older homeowners wishing to downsize and buy into a flexible package of on-site support for health and wellbeing.

To offer extra support and independence in later life, we have a variety of homes for people aged over 55 for rent and shared ownership. Homes like these have extra service charges to pay for the on-site support, care and amenities. This table shows monthly costs for different types and sizes of Soha Housing homes with support.

£132,500

1 bed sheltered

1 bed extra care

2 bed sheltered

2 bed extra care

Average monthly Soha over 55s social rent and service charges

£425

£628

£454

£675

Average monthly Soha over 55s affordable rent and service charges

None

£720

None

£810

Size/type of home

50% outright share

£625

monthly rent, services and core care

Charges and Housing Benefit Not all of the service and other charges are covered by Housing Benefit. So if you’re likely to need help to afford this sort of home, please check with us about which charges are eligible when working out your budget.

For more details about our homes for the over 55s with support and care, see www.soha.co.uk/sheltered-and-extra-care

More help and information Please contact us if you have any queries or concerns about being able to afford a Soha Housing home, or need advice about which sort of home is best for you. There are plenty of other sources of free, independent help and information, including: l Benefits calculator: www.entitledto.co.uk/benefits-calculator l Mortgage guide and calculator: www.moneysavingexpert.com/mortgages/mortgage-guide www.moneysavingexpert.com/mortgages/mortgage-rate-calculator

If you’d like to have this guide in a different language, large print, audio or another format, please contact us on 01235 515 900 or 0800 014 15 45 Soha Housing is an established, award-winning, community-based housing provider working in and around South Oxfordshire. We provide more than 6,500 great quality, affordable homes for people who cannot easily rent or buy in the private sector. We offer homes and support for people at different stages of life – from social and affordable rented properties, to shared ownership for first-time buyers and sheltered and extra care housing for older people. Two households a day find a home they can afford with Soha.

Soha Housing

Royal Scot House • 99 Station Road • Didcot Oxfordshire • OX11 7NN 01235 515 900 • 0800 014 15 45 ( free from UK landlines) [email protected] • www.soha.co.uk SohaHousing

JULY 2016

@SohaHousing

We’re proud to be part of the national PlaceShapers alliance of community – based housing associations – www.placeshapers.org

Weblinks correct at time of going to press