The relentless rise of house prices has robbed many workers of the hope of home ownership - and even easing house prices will do little to restore affordability. But throughout the UK, local councils, developers and housing associations or co-operatives are busy pouring government money into building or buying “affordable homes” to be sold or rented to such worthy cases. What many people may not realise is that they, too, may have the right to be in one of these homes.

Our guide to affordable housing shows where the homes are and what you need to do to secure one. It can be a tortuous process negotiating the many schemes - and even more numerous rules and exclusions. But the rewards are great. An apartment overlooking Hyde Park or in a cutting-edge development in Clerkenwell may seem well beyond the reach of all but the super-rich. But mere mortals - those on social housing lists, first-time buyers, low-paid professionals and key workers - can live in some of the UK's most desirable addresses at a fraction of the cost paid by their wealthy neighbours.

In theory, all new developments in London that have 15 or more more units must aim to provide 50 per cent affordable on-site housing, although at present that is met by few developers. Imperial Wharf[, a riverside development in Chelsea, is one of the first to achieve 50 per cent affordable. Here, a two-bedroom river-view flat sells for just under £1 million; however, those who qualify for affordable housing are able to rent and purchase homes there much more cheaply. There are 125 homes allocated to shared-ownership schemes, 50 set aside for key workers who can rent for about 40 per cent below market value, and discount sale homes, where people can purchase for about 30 per cent below market value. There is also housing for the elderly and students.

Most new London developments manage about 35 to 40 per cent affordable housing, according to Nina Coulter, of the estate agent Savills. She says: “This will be a mix of social rented accommodation, key worker flats and shared-ownership properties.” In many developments, there will also be “intermediate housing”, which includes shared equity schemes.

Not all luxury developments will provide affordable housing on-site. One Hyde Park, the lavish Candy & Candy development in Knightsbridge, has also been obliged to have a social housing element, but it is some two miles away, on Regency Street in Pimlico. “Some schemes do have the opportunity to place affordable housing off site, but that's quite rare now,” Coulter says. “It does make sense in locations where the capital values are very high, such as One Hyde Park.”

However, it is possible to find integrated affordable housing in highly desirable spots. The Lancasters is another Hyde Park development that offers social housing - 11 of 91 units are designated affordable - but these will be offered alongside the private homes, expected to sell for around £2,200 per sq ft, within the refurbished, Grade II listed building.

This is affordable housing to die for, but it will be available to only a fast-moving few. “With social rented accommodation, it is simply a matter of being on the list at the right time,” Coulter says. “With shared ownership and equity schemes, it is on a first come, first served, basis.” The desirability of the fanciest affordable homes may not be widely advertised - but it is only a matter of time.

LONDON

Elephant and Castle.The £1.5 billion regeneration of this neglected part of London will quadruple the local housing stock. A big proportion will be affordable: desirable schemes include Strata SE1, a 42-storey tower including 80 shared-ownership homes (familymosaic.co.uk). Printworks, a mixed-use development on Amelia Street, will offer 70 affordable flats for key workers (savills.co.uk).

Charterhouse Thesq. This Clerkenwell scheme has 124 one to three-bedroom flats, 50 to be sold by the Presentation Housing Association as affordable homes. With views over Charterhouse and Smithfield Market, it will have wrap-around balconies, terraces and high-spec interiors - both in the private and affordable homes (presentation-sia.org.uk).

Lots Road. The old Lots Road power station site, on the Kensington & Chelsea and Hammersmith & Fulham border, is being redeveloped by Farrells to include offices, shops and homes. More than 820 apartments will be created in a variety of buildings, including two towers of 37 and 25 storeys. Nearly half of the homes will be available for affordable housing. It is due for completion in 2013 (terryfarrell.co.uk)

MANCHESTER

The Hub. Part of the Piccadilly Place development in Central Manchester, The Hub offers a shared-equity scheme which reduces the price of the cheapest apartments to £99,600 (savills.co.uk). Buyers who cannot afford the full market price can purchase 80 to 85 per cent of the property.

3 Towers. Urban Splash has revamped former council blocks on Rochdale Road. Beautifully finished flats in the third tower, named Sylvia (the others are Emmeline and Christabel, after the Pankhurst sisters), will be available through the First Time Buyers' Initiative (urbansplash.co.uk).

LIVERPOOL

The Foundry. In the Ropewalks area of Liverpool, The Foundry comprises new buildings and renovated warehouses. The development is entirely given over to affordable housing, with studios, one-bedroom and two-bedroom flats available on a shared-ownership basis: expect to pay £107,500 for a 50 per cent share (livingthecity.co.uk).

CASE STUDY

Francis Stewart, 41, a teacher in Tower Hamlets, East London, used to drive to work every day from his shared-ownership flat in Walthamstow, passing an “interesting, funky-looking” new building on Regent's Canal. “I used to pass it and think, ‘If I lived here, I would just be getting up for work, rather than having spent ages in the car'.” Eventually he rang Savills, the agent marketing the Adelaide Wharf development, and found that it was holding a pre-launch event for key workers.

Last November he bought a two-bedroom flat in the building for only £150,000. “I bought my flat through a shared-equity scheme,” Mr Stewart explains. “I own 100per cent of the flat, but I bought it for around 45 to 50 per cent of market value. I have a share in the equity: this means that if I choose to sell and make a profit, I split that profit with the developer.” If he sold in the first year he would receive only 10 per cent of the profit and the developer would get the rest. In the second year the split is 20:80, in the third year 40:60, and after four years it shifts in Stewart's favour, with a 60:40 split. “The scheme discourages people who are just looking to make money out of it. I'm not interested in that: when I bought it I wasn't looking to make money, I was looking for somewhere to live.”

Stewart is delighted with his flat: “It's a great location, and it is a lovely development.” Adelaide Wharf is built around a courtyard, overlooks both Regent's Canal and Haggerston Park, and is only a mile from Broadgate. “It's a very good size - about 80sqm. The bathroom is like something out of a hotel and the bedroom's enormous. It's all very high spec - I have the same spec as my neighbour,” he says. “Just because I'm a teacher, why shouldn't I also get granite worktops, wooden floors and a nice bathroom? The place doesn't have that 'deserving poor' feel about it.”

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