A plan to offer loans to residents to get more people on the property ladder and to bring empty properties back into use has been backed by councillors.
Ceredigion County Council’s Cabinet gave approval to develop a Community Housing Scheme at a meeting on 6 June.
The scheme will see the council help residents fund home purchases in a bid to help ease the housing crisis in the county, with many unable to afford to buy a home amid rising prices and stagnant wages.
Figures show that there are more than 4,000 affordable homes across Ceredigion.
The council says, however, that that figure “is not enough to meet demand as the existing properties are generally restricted to those people in most need” including those in need of social rent.
Data last year showed there had been more than 1,405 applications for social housing received by the council by March 2022, with figures suggesting there are 1,700 people on the register for social housing.
“There remains a group of people who we consider to have an ‘intermediate need’ who wish to purchase properties in their local communities but are ‘priced out of the market’,” a report into the planned housing scheme outlines.
On average, 45 new affordable homes are delivered each year, with 675 delivered since 2008, data shows.
“However, this is not enough, and by any measure, there is a greater need than we can presently supply,” the report adds.
The council said that since the commitment was made to such a scheme in 2021, “press interest suggests there is strong demand for council-backed support for affordable housing.”
Under the new scheme, a minimum five per cent deposit will be required, with the council contributing no more than 40 per cent of the equity of the home if it is registered as empty, and 20 per cent of an occupiable home.
The maximum house price will be set at £300,000, but that figure will be reviewed annually.
The scheme will be funded by money raised from the 25 per cent Council Tax Second Homes Premium – a levy that brings in £400,000 a year – with a current ring-fenced pot of around £1.5m.
“Extra funding will also be released as equity loans are repaid to the council as properties are sold or when owners staircases to full ownership,” the report added.
“There is potential to assist the purchase of a minimum of 25 occupiable properties or 13 empty properties at the maximum purchase price, more if assuming a lower valuation.
“Annually thereafter it is anticipated the Second Home Premium will continue to raise circa £400,000, which will support an estimated minimum of seven occupiable or three empty property purchases.”