© 2018 Lotza Design

Initiatives In Other Countries

To date the only other similar arrangement known is outlined in this Guardian article from 2013...

 

https://www.theguardian.com/housing-network/2013/nov/05/housing-permanently-affordable-scotland

 

Which notes….

 

“It also effectively creates public subsidy out of private subsidy. Landowners are encouraged to offer land at a discounted rate, reassured that their discount will be locked in the form of the equity share held by the rural housing body.

 

Rural housing burdens can also offer the government a reliable method of locking in, as an equity share, any subsidy they might wish to invest in affordable home ownership initiatives for the benefit of both subsequent purchasers and the communities they are part of.

 

The model is not without its challenges, particularly in today's restricted mortgage market. But rural housing bodies are working closely with mortgage lenders and other parties to overcome these issues and to enable more communities to benefit. Given the ability to both lock in private subsidy and give greater control to local communities – two highly desirable policy outcomes – the model deserves consideration beyond rural Scotland.”

Other

Work environments for those on lower incomes are more likely to be short term contracts or casual. This is yet another impediment to home ownership in the below median income section of the community.

Conclusion