New Homes

New homes

Many new homes will be required for the district over the next 25 years. These proposals for West of Stratford are for 800 new homes provided over a period of time in a phased development. The majority of the homes will be two storeys in height and there will be a range of sizes and styles, all of which will be in keeping with their historic surroundings.

A major plus for local people is that they will be able to apply for a proportion of the new homes at a discounted rate if they already live in the area. Our own local survey work has shown that a substantial majority agree that there are substantial problems for local people purchasing houses in the area.

People today are living for longer, which means new homes are needed in Stratford for the working population if the town is not to go into decline. However, new homes in a development such as this must be planned carefully and delivered as part of a single coherent scheme that considers and delivers all the transport and infrastructure needs.

West Stratford will not be a piecemeal urban extension: such encroachment only creates disjointed suburbs. Instead it will be designed to integrate with its surroundings. The new houses will reflect the best of Stratford’s heritage; in contrast with some of the post-war estates that have swelled the Stratford suburbs to their current size.

The West Stratford development will incorporate a wide range of measures that will make the scheme a truly sustainable new addition to Stratford.  As such, it will make a major contribution to the policies and objectives of the District Council in terms of encouraging sustainable development. The measures will include:

  • Low carbon, sustainable new buildings
  • Renewable energy measures
  • Increased biodiversity
  • Easy pedestrian and cycle movement
  • Recycling built into the development from the start

The scheme will be designed from the outset to fit in coherently with the other features being delivered such as the new primary school, health centre and Western Relief Road. With 800 new homes, the Government (under its new homes bonus provisions) would grant an estimated additional £8 million to Stratford-on-Avon District Council, matching the same amount raised in Council Tax.

Low Cost Home Ownership Housing Provision

Bloor Homes and Hallam Land who are promoting the development have offered to provide 35% affordable housing equating to approximately 280 new homes of the 800 proposed. 

Within this proposal, 25% of these (around 70 homes) would be developed as LCHO (Low Cost Home Ownership) properties. 

These properties will be in the form of shared equity housing offered directly to eligible local purchasers only. The homes would be discounted by 30% of their market value. The value of the discount would either be transferred to the District Council or fixed in perpetuity for the life of the dwelling, meaning that the house retains its value, but is more affordable for local buyers.

If the purchaser wishes to sell it on in the future, the sale would be on the basis of it being as a restricted affordable discounted sale property.  The LHCO scheme allows direct access for local people on lower incomes to purchase primarily 2 and 3 bedroom houses at a significantly subsidised level.

Some examples of the different prices of different options, such as shared equity schemes and renting privately, are shown below (all mortgage costs are based upon a standard variable rate 25 year repayment loan at an interest rate of 3% per annum).

LHCO example

A 2 bedroom house with an open market value (OMV) of £140,000

  • Restricted sale of property at 70% of OMV= £98,000
  • Eligible purchaser obtained a mortgage/savings to buy 70% equity for £98,000
  • The cost of a repayment mortgage (based on a 95% mortgage) =  £441 per month.

By comparison the example below shows the cost of a traditional “Shared Ownership” property.

Traditional shared ownership

2 bedroom house with an open market value of £140,000

  • Initial sale of property at 50% of OMV = £70,000
  • Eligible purchaser obtained mortgage/savings to buy 50% equity for £70,000
  • Rent paid to a Registered Social Landlord (based on 2.75% of unsold equity) = £160 per month
  • Cost of mortgage (based on 95% mortgage) = £315 per month
  • Combined cost to purchaser (rent + mortgage) =  £475 per month

Private rental

A comparable property would cost around £650 per month to rent.

Summary

The comparitive monthly costs for local people:

  • Rental £650 per month
  • Traditional shared ownership  £475 per month 
  • LHCO scheme £441 per month

The LHCO scheme therefore allows home ownership and costs less each month.

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