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Housing Associations will be building more homes for rent over the next 4 years in the City. 158 homes have been approved with the bulk (99) going to the exemplar Joseph Rowntree Housing Trust.
The homes are in addition to those previously approved such as the Derwenthorpe development.
The Government is providing a grant of £22K per home.
The allocations are not for specific sites so the location of the new units will be decided over the next few months
Tenants will be charged an “affordable rent” for the property. This could mean around £420 – £480 per month for a 3 bedroomed home. These are higher than the “social rents” which apply to Council homes and existing Housing Association tenancies.
However, less well of tenants will qualify for housing benefit.
The higher rents produce income which goes towards paying off the money borrowed to finance building costs.
Most Housing Association relets are likely to be at the new “affordable rent “level. This is usually set at between 60% and 80% of the market rent. Only around 60 properties each year will be affected by this change which does not apply to existing tenancies.
The York Council is likely to cap “affordable” rent levels, on 3 bedroomed properties provided under Section 106 agreements, at 55% of the market rent.