Qualifying for an affordable home (Section 106)

Last Updated: 3 April 2024

Once you have found an affordable home for sale, you can then apply to us to see if you qualify to purchase it. The application process is based on the Section 106 Agreement attached to the specific affordable property. This Agreement is a legal document which places specific conditions on the property or land. It ensures that the property remains an affordable property each time it is sold and provides the criteria for potential purchasers. Although every Section 106 is unique to each property, the three main clauses are;

Local connection 

This clause ensures that only people with an established connection to the specified locality can buy the property. The locality is defined in the Section 106 which normally gives a list of parishes. Ask the owner for these details, or us if the owner is unsure.

There are numerous variations in local connection criteria between section 106 agreements. Generally most will state that you must have lived for at least three years immediately prior to your application or, have a permanent job (over 16 hours per week) or firm job offer in one of the parishes listed in the section 106 for the specific property (the locality). Contact us for more information on local connection criteria.

Housing need

Affordable housing is for those who are in housing need and unable to afford to buy a home on the open market. We work out whether you qualify by looking at your household's; circumstances, income, savings, equity in any property or land you own, wages, potential mortgage amongst other things. We then compare this to a table of property values from independent property surveyors, to calculate whether you qualify.

Use of the property

The property must be your only or principal home and cannot be used as a 'buy to let', second home or holiday let. 

Variations

Both we and each property owner must abide by the terms contained within the Section 106 Agreement for the lifetime of the property. We assess applications case by case and refer to the Section 106 Agreement specific to the property of interest. The Section 106 Agreement has evolved over time, as such there are significant variations between properties.