Affordable housing

Information about what affordable housing is, what market rent is, social rented housing, renting, registered providers, affordable rent, intermediate housing, shared ownership, shared equity, help with housing costs, a need for affordable housing, new affordable homes and how to buy an affordable home.

What is affordable housing?

Affordable housing is housing to meet the needs of people who do not have sufficient income to pay for open market housing to rent or buy. Usually it is housing provided by the council or housing associations that can be rented or purchased at less than market prices.

What is market rent?

This is rent paid that is not subsidised. The price depends on the availability of and demand for housing in an area, and the cost of alternatives such as owner occupation. Properties owned by private landlords are usually let at market rents.

What is social rented housing?

Homes owned or managed by registered providers such as councils and housing associations which are let at below-market rents set under the national formula.

How can I rent a council or housing association home?

Our 'What and Where booklet lists where all council and housing association houses are. Our allocation scheme sets out how council houses are allocated, it also is able to nominate to a proportion of housing association homes. To apply to go on the housing register you need to complete an application form. Further information can be found on the housing advice page.

Who are registered providers of social housing?

Registered providers are local authority landlords and housing associations, registered with and regulated by the Homes and Communities Agency. In the East Riding, the council and a number of housing associations are registered providers.

What is affordable rent?

This is a recently introduced approach to setting rents for new housing association properties at 80% of average local market rents. It may also apply to new tenants of existing homes and is a type of intermediate housing.

What is the difference between social rent and affordable rent?

These differences and our policy on affordable rents are set out within the Affordable Rent Policy, which is available to view on our plans an policies page

What is intermediate housing?

Housing that costs more than social rented housing but less than a market rent. It also includes homes that can be bought at less than market prices through shared ownership or shared equity arrangements.

What is shared ownership?

Shared Ownership is a way of buying a proportion of a home and paying rent on the remainder. Both East Riding of Yorkshire Council and some Housing Associations manage shared ownership property. It is usually possible to buy additional shares of the dwelling until it is owned outright although this may not be possible in some rural areas. Shared Ownership properties which are available to purchase can be found on Rightmove.

Rightmove (external website)

East Riding of Yorkshire Council's shared ownership properties are for sale and managed by the council and are advertised through Clubley's Estate Agent. Clubley's have been appointed as our sales agent who works in partnership with the council and details of properties currently for sale can be found on their website:

Clubley's Estate Agent (external website)

The Shared Ownership Policy outlines how the council will develop and acquire shared ownership properties to meet housing need in the area:

Shared Ownership Policy 2022-25 (pdf 507kb)

For details on how we will use any information you provide please see the Privacy Notice.

What is shared equity?

Purchasers buy a specified proportion of the value of the home but do not pay rent on the remaining proportion, which is owned by a registered provider who ensures that future sales are restricted to eligible households and that affordability is maintained. Purchasers are not able to buy additional shares in the property.

Is there any help with housing costs?

If you are having difficulty paying your rent, you may be eligible for housing benefit. If you are buying your home and are struggling to pay your mortgage you should seek financial advice as soon as possible and speak to your mortgage provider.

Alternatively, advice may be sought from:

The Community Legal Advice Network (external website)

Citizens Advice (external website)

Further information can be found on the housing advice page and from the DirectGov website:

DirectGov - Buying, selling and owning a home (external website)

How is the need for affordable housing in the East Riding assessed?

The council's Local Housing Need Assessment assesses the need for housing in the area and looks at the way local housing markets work and how this affects the need for different types of housing across all tenures:

Local Housing Need Assessment 2022 (pdf 14mb)

In addition, the council’s rural housing enabler can work with parish councils and local communities to identify the need for affordable housing in rural areas through housing needs surveys at the parish level.

The council has produced a Local Plan Viability Study to help determine appropriate affordable housing targets in and across the East Riding. This can be found on the Local Plan evidence base page.

How are new affordable homes provided?

They may be:

  • built by the council
  • built by other registered providers working in partnership with the council
  • built by private developers who can be required to provide an element of affordable housing (planning gain) which is typically sold to a registered provider at less than market value. This is set out in the Affordable Housing Interim Approach.

How can I buy an affordable home?

'Help to Buy' is an umbrella term for a range of government funded schemes designed to help people to get onto the property ladder. There are several options available, including:

Help to Buy NEYH are the agent for the North East, Yorkshire and Humberside. They can provide advice on the schemes available, check if you are eligible and help you to find a property. Further details about the schemes can be found on Help to Buy NEYH website:

Help to Buy NEYH (external website)

Alternatively, you can contact the team directly:

Tel: 0113 852 6888

What is a Discounted Market Sale (DMS) home?

A Discounted Market Sale Home is a home which is sold at a discounted proportion of the market sale value and any purchaser will own 100 per cent of the property (with no service or management charges). The aim of the DMS product is to help people get onto the property ladder who may not otherwise be able to afford to purchase a home on the open market.

There are therefore a number of qualifying criteria which potential buyers would need to meet in order to be able to purchase a DMS home. You can find details of these criteria below.

How do I resell a Discounted Market Sale home I have purchased?

If you purchased your home as a Discount Market Sale (DMS) property, you will be aware from your initial purchase when you come to sell the property, it must be sold at a discounted price in accordance with S106 legal agreements (a planning document signed by the developer), but any profit made will be retained by you.

Before contacting estate agents to market your property, we strongly recommend that you contact the Housing Strategy team at who will be able to guide you through the sale process.

Please be aware that if you decide to sell your property, the following covenants apply.

  • Under the DMS mechanism, the property must be sold at 65% of the market value at that time. The covenant remains with the property in perpetuity and there is no option for any household to remove this covenant at any point in the future, which will allow the property to always remain affordable.
  • You will be required to obtain three independent valuations, and the resale price must be agreed by the council before putting the property on the open market. The resale price will usually be the average price from all the valuations. It is important to note that the property cannot be sold at a value greater than the agreed resale price.
  • Should you wish to sell this property, you will be required to give the council 28 days' notice in order for us to nominate another household for the scheme. If the council is unable to nominate another household or does not wish to exercise its right to nominate a household, you will be free to advertise / market the property on the open market to another eligible household.
  • The property should always be the purchasers’ principal or only home and therefore cannot be rented out (this is to ensure that it remains an Affordable Home for someone rather than a buy-to-let investment). Enforcement action could be taken if is it deemed to have been rented out.

When advertising/marketing the property, it must be made clear to any potential purchaser that specific qualifying criteria apply from the outset of the discount sale process and that any future sale of the property will also be restricted by these criteria.

The property must be sold on to another household who meets the qualifying criteria. All potential purchasers will be required to present evidence to the council’s officers to assess their need.

Discount Market Homes are not available to assist buy-to-let investors or those who will own another property other than their Discount Market Home after completing their purchase.

If the applicant is a homeowner, they will need to have a sale in place before they can reserve on the Discount Market scheme and the home must be sold at the time of completion of their purchase.

Applicants will only be authorised to proceed with a purchase after successfully passing the criteria below:

  • Buyers must be assessed as having a recognised housing need
  • Must be unable to purchase a property on the open market
  • Have a household income of less than £80,000 per annum.
  • Have a deposit for the property
  • Have a local connection* to the East Riding of Yorkshire by way of residence, employment, or family
  • Be in employment and qualify for a mortgage
  • Be aged over 18 and have a bank, Post Office or building society account
  • Should not own another property or have a share in a property at the time of application
  • Have savings or equity of less than £150,000.

*A local connection is by virtue of either:

  • Residence: normally resident in the area of East Riding for at least six out of the last twelve months or three out of the last five years
  • Family association: normally meaning that the applicant has parents, grandparents, adult children, grandchildren, a brother or a sister currently living within the East Riding who have been normally resident within the East Riding for at least five years
  • Employment: secure employment for at least 1 year and a minimum of 20 hours per week.

As DMS homes are aimed at people in housing need and unable to purchase on the open market, it is highly unlikely that cash buyers would meet the eligibility criteria.

In all other respects, the sale of the property should progress like any other i.e. market driven. The only role the council takes in the process is to confirm that potential buyers qualify for purchase, agree the resale price and ensure that terms in the S106 legal agreement are adhered to. The rules on resale are clear and are in place to help maintain Affordable Housing in the area. It is the responsibility of the conveyancing solicitor to fully explain the restrictors and covenants to buyers, and that sellers understand the terms of the agreement attached to the property.

If you have any questions, please contact the Housing Strategy team at:

What is community-led housing?

Community-led housing is a way for local communities to bring forward new affordable housing schemes to meet the needs of their communities, normally helping specific groups, for example, young people, older people or those in need of low-cost family homes. In 2016 the council was awarded £2 million from the Community Housing Fund to support community-led housing in the area.

Further information on how to access this funding is detailed in the Community Housing Policy. This is available to view below:

Community Housing Fund Policy (pdf 121kb)

How can I find out about buying a First Home?

If you’re a first-time buyer, you may be able buy a home for 30% less than its market value. This offer is called First Homes which is a new affordable housing product. The home can be:

  • a new home built by a developer
  • a home you buy from someone else who originally bought it as part of the scheme

The First Homes scheme is only available in England.

Who is eligible to purchase a First Home?

To be able to purchase a First Home in the East Riding of Yorkshire, you should be:

  • over the age of 18
  • have a *local connection to the East Riding of Yorkshire
  • have a gross household income less than £70,000 per year.

*A local connection means either:

  • normally resident in the area of East Riding for at least six out of the last twelve months or three out of the last five years
  • by virtue of family association normally meaning that the applicant has parents, grandparents, adult children, grandchildren, a brother or a sister currently living within the East Riding who have been normally resident within the East Riding for at least five years
  • secure employment for at least 1 year and a minimum of 20 hours per week.

To verify your local connection, one or more of the following documents may be requested depending on the nature of your connection to the area:

  • Rent book
  • Tenancy agreement
  • Contract of employment
  • Landlord references
  • Utility bill
  • Council Tax bill
  • Bank statement
  • Driving licence.

Please note: for joint applications, only one applicant needs to meet the local connection requirement.

Developments currently offering First Homes in the area:

The council has approved developments which should provide First Homes in the following settlements:

  • Bridlington
  • Driffield
  • Eastrington
  • Goole
  • Holme on Spalding Moor: COMING SOON: 2 First Homes from Newett Homes
  • Hornsea: COMING SOON : 2 First Homes from Ward Homes Yorkshire
  • Howden
  • Kilham
  • Pocklington
  • Snaith: COMING SOON: Land west of Pontefract Road - 8 First Homes from Bellway
  • Withernsea.

We are currently unable to provide timescales for the marketing and delivery of these homes but will update details here as they become available.

You can find our more on the GOV.UK website:

GOV.UK - Customer guide for buying a first home (external website)

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