Housing associations around Kenilworth have appealed to the district council to help in removing strict rules on affordable housing in the area.

Top councillors at Warwick District Council will tomorrow (September 4) consider a report which outlines how many new shared ownership homes in Kenilworth are in 'designated protected areas' (DPA's) which restrict what buyers are allowed to do with a new home.

Shared ownership homes allow homeowners to purchase part of the house, and then rent the rest of it from the builder or housing association. 

The leaseholder can then buy more shares in the house to eventually own all of it over time - in a process called 'staircasing'.

Once they have bought 100 per cent of the home, it is then a market property and not an affordable home.

However in DPA's, buyers are often only able to buy 80 per cent of the property, or have an obligation to sell it back to the developer if they decide to move.

"These conditions prevent the loss of shared ownership housing stock thereby ensuring these homes are available in perpetuity to future households in need," a council report explained. 

"However, where staircasing is capped at 80 per cent it can limit the availability of mortgages for purchasers and higher interest rates can apply. 

"Further, where full staircasing is allowed but the lease includes a mandatory buy back clause for the landlord it can expose providers to additional financial risks in the event they have to buy back a property."

Locally, Warwick, Royal Leamington Spa, Whitnash and Cubbington are not covered by DPA's, but much of the outskirts of Kenilworth are.

To remove a DPA, the local authority must support the local housing association in applying to Homes England for a waiver.

"WDC has been approached by several Housing Associations seeking support for waivers," the report continued. 

"For example, in Kenilworth parish DPA status extends up to the edge of the existing urban areas, however as developments are built around the periphery of the town, they project into the DPA. 

"Given there are a large number of shared ownership homes in Kenilworth and more are under construction, it would not be difficult to replace any lost through staircasing and therefore there is no overriding need for the protection given by DPA status."

Cabinet members will tomorrow consider giving the council's head of housing the authority to decide whether to apply for such wavers.

But the report stressed the council would only support an application in line with Homes England's guidance.

See the full report here.