Published: 5th Feb 2020

The West Midlands Combined Authority (WMCA) has become the first region in the country to introduce its own definition of ‘affordable housing’. The new definition is based on local people paying no more than 35% of their salary on mortgages or rent. Affordable housing is normally defined as being priced at 80% of current market value, making this the first time the definition has been linked to people’s incomes, rather than the value of a home. The new definition sets it at around 35% or less of the average gross earnings of the lowest quarter of wage earners in the local area. It will be applied alongside a more flexible approach to the types of housing products classed as affordable in new developments.  The guidelines will be reviewed regularly to make sure prices reflect real incomes of local residents and the scheme is delivering its intention and purpose. The new … (To read the full article, subscribe below)