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Affordable Homes

Volume 462: debated on Thursday 28 June 2007

To ask the Secretary of State for Communities and Local Government what the latest estimate is of the average sale price of an affordable home produced in each of the areas participating in the design for manufacture competition. (111939)

I refer the hon. Member to the answer given to the hon. Member for Milton Keynes North-East (Mr. Lancaster) on 6 March 2007, Official Report, column 1890W.

In this answer I set out precise details for one of the sites in the competition that is one of the first to reach the stage of having completed homes available. On this site, Renny Lodge, we expect people will be able to purchase a 30 per cent. equity stake in a two bedroom home available under Homebuy shared ownership arrangements for between £42,000 and £46,800. The homes available through the First Time Buyers Initiative will typically be available at equity stakes from 50 per cent. starting at around £71,500 for a one bedroom flat.

The other nine sites are at different stages of construction and are spread around the country. The prices of the units for sale will reflect the land value, the local market at the time they go on sale and the equity share as well as the construction cost. However, all sites will include a proportion of affordable housing. This includes social rent and different kinds of shared ownership. We expect that an equity stake in a home, through either shared equity or shared ownership arrangements, will be available on every site other than the one in Hastings for a cost of £60,000 to £70,000. On the Hastings site all of the 15 units will be for affordable rent.