Context

4.47 A minority proportion of affordable housing provided through developer contribution is likely to be offered as intermediate discounted market housing. North Somerset Council’s preferred approach is that this is through “shared ownership”. This enables a home buyer to purchase a percentage share of a leasehold home and pay a subsidised rent to a social landlord on the remainder. The house should remain as shared ownership in perpetuity.

4.48 First Homes is a recent government backed affordable housing product. It offers:

• A discount on the purchase price of a minimum of 30% against the market value;
• Sale price no higher than £250,000 after the discount is applied in perpetuity;
• Restriction to first-time buyers with a household with a combined annual income of less than £80,000.

4.49 Where justified by local evidence of affordability, a deeper minimum discount of up to 50% may be set.

4.50 In 2021, The UK average house price was £250,000. This is similar to the average price in Weston Super Mare. An average house in Portishead now costs in excess of £400,000 (Rightmove 2022). The Portishead Housing Needs Assessment (2021) has identified that a household income of at least £90,000 is required to afford repayments on a market home in Portishead. The average total household income before housing costs locally was £46,833 in Portishead in 2018 (ONS).

4.51 The assessment concluded that households on an average income in Portishead would not be able to afford a 50% share of a First Home if the standard 30% discount was applied. In Portishead, acquiring a First Home product would only be likely to be affordable for people on an average income if a discount of 50% is applied.

Relevant Objective

O8 To protect Portishead’s stock of one and two bedroom and accessible homes, and ensure that any future housing that comes forward to meet government targets contains a diverse range of tenures, forms and sizes to meet the identified housing needs of the community, protects and enhances Portishead’s distinct character and maintains resident amenity and highway safety.

Local Policy Context

• CS15: Mixed and Balanced Communities
• CS16: Affordable Housing

POLICY - PWH5 FIRST HOMES DISCOUNT IN PORTISHEAD

Where First Home discounted market housing is provided within Portishead, all First Homes provision will be offered at a discount of 50% of market value in perpetuity, subject to viability.