Chartered Institute of Housing Level 2 Certificate in Housing Practice (QCF) Unit 2M1 – Housing Provision and Housing Organisations
Assignment task 1
Tenure is classed as ‘The legal relationship between the resident and the home they inhabit’. There are two different forms of tenure, the first being Owner Occupation and the second being Renting. Owner Occupation
The largest type of tenure within the UK is Owner Occupation, this is where the tenant actually owns the home they live in, either in full or part-owned. 66% of tenants within the UK are home owners making the owner occupier market the biggest in the housing world. There are two specific types of home ownership, Full owner occupier and Shared ownership.
A full owner occupier is someone who owns 100% of their homes, be that the land it is built on, the building and all surrounding land and the contents of the home. They will usually have a mortgage from a bank or building society to pay for the purchase of a home over a set number of years, however some may own their homes outright after the cost of purchasing the home has been paid off.
A shared ownership occupier is someone who owns a specific percentage of their home and this is usually a joint ownership with the person who built the property. This tends to be arranged with the local council or a social landlord, who may of paid to build the property and is now selling off a ‘stake’ in the property. Like a full owner occupier the costs of a shared ownership property will usually be met by either mortgage for the percentage ownership of the property over a set number of years or by paying the cost of purchasing said percentage of the house in full.
The second type of tenure within the housing market in the UK is renting, with approximately 34% of people currently renting a property. Like Owner Occupiers there are two types of rental properties. Private renting and Social renting.
A private renting tenant is someone who pays a set amount of money to rent a property from a private landlord, the private landlord is usually the Owner of the property however they choose not to occupy the premises but ‘let’ it out to a tenant.
A social renting tenant is someone who pays their rent to a council, housing association or another not for profit company, their landlord owns the property outright and usually has a portfolio of properties that they rent out to tenants.
I am now going to look at the main advantages and disadvantages of the three major forms of tenure, and then look at how each type of tenure can be ended Tenure
| Main advantages of this type of tenure
| Main disadvantages of this type of tenure
| How is each type of tenure brought to an end?
| Owner Occupier
| * The cost of a mortgage may be cheaper than renting a similar property * The home is an asset which can be passed on to relatives, children etc. * Money can be raised on the value of your home (Equity release or re-mortgaging) * The property may increase in value * When mortgage has been paid off the tenant has very limited housing costs
| * Owner Occupier must meet the full cost of maintenance themselves * Owners MUST have Buildings & Contents insurance in order to secure a mortgage * First time buyers will need to find a large deposit to secure a mortgage * Tenant is responsible for any legal fees * Property could depreciate in value leaving the tenant with negative equity
| To end a tenure on an owner occupiers tenancy a court order must be granted to the company who finances the mortgage for the property, the courts must be satisfied that the finance company have done everything possible to avoid the tenant being re-possessed
How are people on low incomes assisted in paying for an Owner Occupier property?
Owner occupiers receive no financial aid towards paying the cost of their mortgage, if the tenant finds themselves out of work for over twelve months they can apply for aid to...
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