Government consults on wider definition of affordable housing
The Department for Communities and Local Government has launched a consultation on changes to national planning policy, including a proposed broadening of the definition of affordable housing.
The DCLG said it wanted to “expand the range of low cost housing opportunities for those aspiring to own their new home”.
In the consultation paper the Department said the current definition included some low cost home ownership models, such as shared ownership and shared equity, provided that they were subject to ‘in perpetuity’ restrictions or the subsidy was recycled for alternative affordable housing provision.
“This limits the current availability of home ownership options for households whose needs are not met by the market,” it said.
“We propose to amend the national planning policy definition of affordable housing so that it encompasses a fuller range of products that can support people to access home ownership. We propose that the definition will continue to include a range of affordable products for rent and for ownership for households whose needs are not met by the market, but without being unnecessarily constrained by the parameters of products that have been used in the past which risk stifling innovation.”
The DCLG said this would include products that were analogous to low cost market housing or intermediate rent, such as discount market sales or rent to buy housing. Some of these products might not be subject to ‘in perpetuity’ restrictions or have recycled subsidy.
“We also propose to make clearer in policy the requirement to plan for the housing needs of those who aspire to home ownership alongside those whose needs are best met through rented homes, subject as now to the overall viability of individual sites,” the paper added.
“By adopting the approach proposed, we are broadening the range of housing types that are taken into account by local authorities in addressing local housing needs to increase affordable home ownership opportunities. This includes allowing local planning authorities to secure starter homes as part of their negotiations on sites.”
The DCLG noted how, in parallel, the Housing and Planning Bill is introducing a statutory duty on local authorities to promote the delivery of starter homes, and a requirement for a proportion of starter homes to be delivered on all suitable reasonably-sized housing developments.
The Department said it would consult separately on the level at which this requirement should be set. “The Bill defines starter homes as new dwellings for first time buyers under 40, sold at a discount of at least 20% of market value and at less than the price cap of £250,000 (or £450,000 in London). Support is available through the Help to buy ISA to help purchasers save for a deposit.”
The consultation also covers:
- increasing residential density around commuter hubs, “to make more efficient use of land in suitable locations”;
- supporting sustainable new settlements, development on brownfield land and small sites, and delivery of housing allocated in plans; and
- supporting delivery of starter homes.
The paper can be viewed here. It runs until 25 January 2016.
