The West Midlands Combined Authority has created a genuinely affordable housing tenure that developers must meet in order to receive grant funding.
The new tenure caps monthly payments at no more than 35% of the average earnings of the lowest quarter of earners. It applies to both rents and mortgage payments.
Any developer that receives housing or land grant funding will be required to deliver 20% of its homes under the new tenure.
West Midlands mayor Andy Street said: “In recent years would-be homeowners have been forced to stand by and watch as house prices outstrip wages.”
He said the 80% discount market rate tenure “still leaves homes frustratingly out of reach” for many people.
Street added: “By linking the definition of affordability to local people’s earnings rather than property, and using this alongside our minimum 20% requirement, we can help make the prospect of home ownership a very real one for many more hard-working individuals and families.
“It also sets out a very clear ambition to developers and partners who want to work with us to deliver homes. This is the kind of inclusive growth that is key to building the future of the West Midlands.”
The West Midlands has a target to deliver 215,000 new homes by 2031. Last year it delivered 16,938 homes, a 15% increase on the previous year and twice the average growth in the UK.
The WMCA recently announced its commitment to become net carbon zero by 2041 and launched a design charter, with mayor Andy Street calling on the industry to deliver sustainable, creative solutions across commercial and residential schemes.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
