Monday, 22 September 2014

Councils are prioritising lucrative development over affordable housing

No cash left for low-cost homes

Councils are dropping affordable housing targets to prioritise more lucrative types of development, the National Housing Federation has warned.

The NHF has raised concerns ahead of the launch of the government’s new national planning policy framework next month. It says that new provisions for funding development are likely to see affordable housing pushed to the bottom of the list, based on current behaviour.

A qualitative survey of six English councils, carried out by law firm SNR Denton, on behalf of the NHF, showed they either took no account of the need for affordable homes in their area or accepted that levels of affordable homes would be sidelined on sites where other development might be deemed more important.

The community infrastructure levy, which came into force in April 2010, allows councils to charge for new developments and spend the resulting money on local infrastructure, excluding affordable housing.

Cameron Watt, head of neighbourhoods at the NHF, said: ‘Cash-strapped local authorities will want to maximise the CIL to pay for infrastructure, like Crossrail in London. Our real concern is that once a developer has paid its CIL contributions there won’t be any money left over for affordable housing provision.’

A letter from London mayor Boris Johnson to Westminster Council reveals that the residential redevelopment of the former Royal Mail depot at Paddington will prioritise a ticket hall and Crossrail before affordable housing provision in the section 106 deal.

In a second blow for affordable development the Homes and Communities Agency stated landlords will not be able to use new affordable rent grant to fund homes agreed under section 106 deals.

‘Section 106 deals have been incredibly important. Research in 2007/8 from Sheffield University showed that 52 per cent of the total value [of the deals], which was £18.5 billion between 2003 and 2008, was going to affordable housing,’ Mr Watt added.

Readers' comments (1)

  • Chris

    Shapps claims landlord flocking to support his scheme.
    Research shows that this is only to expoit the glory rather than provide the desperately needed affordable homes, which they will not now be building.

    Is this success?

    Once again the naysayers have been proven correct in the outcome of the madhatters policies. In this case that badly needed affordable accomodation will not be provided, forcing hard-working low waged people into either unaffordable ownership or unaffordable private rents.

    But still the Shapps groupies will bow at his feet, and of course none of the media dare ask him an awkward question or illicit a response. He appears as untouchable as Porter - but why is the mystery.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

More Newsletters




  • The prefab way


    Hammersmith & Fulham Council is erecting pre-fabricated homes and Brighton has turned to shipping containers, Lydia Stockdale reports

  • Trade secrets


    Can learning from other sectors help social landlords do their jobs better? Heather Spurr visits retail icon John Lewis with a number of landlords to find out

  • Staying power


    By providing a range of services from discounted furniture to advice on everything from welfare to energy, one social enterprise is enabling tenants to avoid debt and stay in their home for longer. Louise Hunt reports.

  • Dragons' Den for retrofit technology

    4 September 2014

    Copying the popular BBC format, Accord Group set up a Dragons’ Den of its own to find the best green technologies to test in a £3m retrofit project. Simon Brandon finds out why

  • Freedom to roam


    Brighton Housing Trust is no housing giant - but it’s a massive technological help to its clients. Jess McCabe reports

IH Subscription