Association CEO, Nick Phillips asks ” what is affordable housing?”
Back in 2015, our friends at Shelter asked this question and we are still wondering what the answer is.
The term âAffordable Housingâ is thrown around in all circles as if there is one defining measure. The world is complex and generalisations save time, but there is a cost to having such a broad measure â the cost is the availability of truly, genuinely, affordable homes.
The Government sets a bar of affordable housing being less than 80% of market rents. Have you seen market rents? 80% of unaffordable is still unaffordable for most people on an average income, let alone basic wage.
Today, the average rent in London is circa ÂŁ2,200 per month. Even with the higher Local Housing Allowance afforded to London residents, most will be hundreds of pounds short every month. The shortfall is about 30% and this level of unaffordability is repeated across the country.
Instead of rent, almshouse residents pay a weekly maintenance contribution (WMC). Most almshouse charities set their WMC to cover their costs and usually it’s within the Local Housing Allowance figure. This model of affordability dates back to the early days of almshouses and, in most almshouse charity governing documents, you will find the wonderful phrase that, in my mind, is a true measure of how affordable housing can be defined:
 âby living in this almshouse the residents will face no greater hardshipâ.
I have certainly not seen a better measure of affordability âŚ.. and yet many local councils across the country still do not recognise almshouses as being âaffordable housing´ in the same way some, less affordable, housing is being supported. When building new almshouses, some almshouse charities are still being required by the local council to pay an âaffordable housingâ charge which is then paid out to other housing providers who are building houses that are defined as ‘affordable housing’, but often less affordable than the new almshouses being built!
We will be asking the next Government for proper recognition of affordable housing and proper recognition for almshouses. Letâs have an even playing field for the oldest form of genuinely affordable housing and this exemplar model of community housing. We will remind Government that almshouses contribute over ÂŁ40m every year through reduced calls on state resources.
Nick Phillips
CEO | The Almshouse Association