I AM writing in response to the letter from Terry James (You Say, Tuesday, January 6).

I would like to explain the meaning of the term "affordable housing", a much-used but misunderstood phrase.

As Mr James points out, in certain parts of the country gaining access to the housing market is beyond the reach of many households.

House prices are such that potential first time buyers, even comparatively high earners, cannot afford to buy a property; renting is equally difficult with rents in the private sector being prohibitively high and council or housing association waiting lists being lengthy.

The Government is anxious to see an increase in the supply of "affordable housing". But what exactly does this mean?

Basically, affordable housing is a generic term for homes that are provided to rent or to buy at below the market rate, primarily, but not exclusively, by local authorities or housing associations (sometimes referred to as registered social landlords).

In the case of rented homes, Government makes grants available to housing associations to subsidise the development of new and refurbished homes that are then let at less than the market rent - typically in Worcester around £65 per week for a three-bedroom house.

The Government also provides grants to enable housing associations to build homes. To ensure housing associations spend the grants they are given wisely, and that public funds are put to good use, they are regulated by the Housing Corporation.

The services provided by housing associations for their tenants and leaseholders are also inspected regularly by the Audit Commission.

CHRIS WITHNALL,

Group Director Operations,

Sanctuary Housing Association,

Worcester.