About Liverpool Habitat for Humanity

Our Financial Model

A new 3 bedroom house in Granby-Toxteth would typically cost £120,000. Habitat for Humanity homes are cheaper because they are subsidised by volunteer labour, gift in kind, the sweat equity of participants in the programme and by fundraising.

Often the only way a low income family can afford a home is through a shared equity scheme: They take out a mortgage on 50% of the house, and pay rent (including profit to the landlord) on the other 50%.

In the unique Habitat for Humanity model, homepartners also take out a mortgage on half the property. But unlike the Shared Equity model:

a) homepartners put in up to 500 hours of their own labour to help build the house, which we attribute to them as a deposit of £10,000

b) No rent is charged on the remaining share of the property for 5 years. Situation reviewed after 5 years
    The family can choose to step up their share of ownership at any time. After 5 years, they are also required to start paying no-profit rent on the remaining share.

      Typical house in area Habitat house

     Market value

       £120,000

      £92,500 - £97,500

     Value attributed to sweat equity

     NA

     £10,000

     Monthly mortgage on 50% of value

     £363

       £350

     Rent payment on remaining 50%

     £156

     £0 (for 5 years, then at no profit)

     Salary required for affordability

      £20-25,000 per annum

       £10 – 15,000 per annum


    House Design

    Our Liverpool homes are designed to be safe and easy for volunteers to build, flexible to enable future adjustments, and environmentally friendly:
    • They have timber frame constructions, laid out as simple terraces rather than staggered, for easy assembly by unskilled volunteers
    • External cladding (brickwork would have required skilled professional labour)
    • Thermal insulation between the two layers for energy efficiency
    • Triple glazed windows for energy efficiency and security
    • Steep pitch roof so attics can be converted to extra rooms at a later date by homepartners

    The scheme has also been recognised as an innovative and positive influence on the construction industry and has achieved Constructing Excellence Demonstration Project status. Administered by Constructing Excellence in the Built Environment – a unique grouping of industry, clients, government and the research community – Demonstration Projects are live construction projects that are innovative or that apply an element of best practice. The learning from these projects is used to influence change in line with Constructing Excellence’s remit of improving industry performance in construction.