What do you do if you don’t qualify for social housing but can’t afford to buy your own home? For the majority of people in this situation, it’s rent a place you can just about manage the costs of, and squander away money into a landlord’s pocket. Damp, mould and mice may just come with it too.
Fewer than one in five people in the UK have a high enough income to meet lenders’ affordability rules and secure a mortgage. That means millions are unable to buy their own home and may feel forced to rent indefinitely.
But there could be a solution. What if local people could takeover disused garage sites and build their own homes? In 2013, four young Londoners who couldn’t afford to buy their own homes and were “uninspired by expensive shared ownership flats with fixtures and fittings they didn’t want”, decided they were going to solve their own housing issues. And then they realised they might be able to help other people too.
They established Naked House, a not-for-profit community builder, that constructs affordable housing for first-time buyers and those with an annual household income of between £25,000 and £70,000. The founders secured three council-owned garage sites in Enfield, North London, where they could build 22 homes on an affordable basis.
The homes are private, but they are on sale for 20% less than the market rate for properties in the local area. Prices start at around £265,000 with the larger ones costing around £330,000.
They comprise a mix of one-, two- and three-bedroom flats. The deal is that the shell of the house is built and then owners can add flooring and plaster the walls themselves.