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Affordable housing threshold proposal presents ‘huge opportunity’
The government’s consideration of a national threshold for affordable housing demonstrates “huge opportunity” for the sector, the chief executive of Homes England has said.
On Monday, Theresa May unveiled plans for a redrafted National Planning Policy Framework (NPPF) in a speech which repeated her claim that fixing the housing crisis is a personal ambition.
In documents released after the speech, the Ministry of Housing, Communities and Local Government (MHCLG) revealed that the government may consider a nationally set threshold for affordable housing.
A spokesperson later added that this was “a long-term suggestion” and not yet out for consultation.
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However, Nick Walkley, chief executive of Homes England, told Inside Housing: “The fact that those sorts of statements are appearing… says is there’s a huge amount of opportunity for the affordable housing sector to make a case.
The prime minister announced £2bn for social housing [in October]. The number is important, but the statement was really significant as well, in policy terms. Where that takes you is a series of further questions, of which a national standard could be one."
Sinead Butters, chief executive of Aspire and chair of the Placeshapers group of housing associations, said she would welcome a minimum standard.
“It drives a strong message about the need for affordable housing,” she said.
Ms Butters added that any standard should include a tightening of the definition of the phrase ‘affordable housing’ to ensure the homes delivered were appropriate.
“No one believes that all affordable housing under its current definition is affordable for everyone, so there would need to be some tightening to make it meaningful,” she said.
“It is certainly the case that to get to the affordable housing numbers we need, the planning system must play a part.”
The draft NPPF released on Monday contains no minimum threshold, but did suggest all developments should contain at least 10% of the homes to be available for affordable homeownership.
This represents a softening of David Cameron’s 20% threshold for Starter Homes, which the government announced in last year’s Housing White Paper.
“It is certainly the case that to get to the affordable housing numbers we need, the planning system must play a part,” said Gavin Smart, deputy chief executive of the Chartered Institute of Housing.
“You can create certainty in that regard through a threshold, and certainty is something the industry clearly regards as important, but it is right to consult over the impact that may have on flexibility.”
Mike Kiely, chair of the Planning Officers’ Society, said: “[The threshold] does need to be a formula. It wouldn’t be a single rate across the country, it would be set in relation to house prices or something like that. I think that is a good idea.”
The NPPF redraft also contained a proposal to require viability assessments to be made public should developers fail to meet minimum standards for affordable housing set by councils.
At-a-glance: the proposed planning changes
These are the key changes to the National Planning Policy Framework outlined on 5 March 2018:
- A shake-up of viability assessments making it harder for developers to negotiate down affordable housing contributions
- Reform of Section 106 and the Community Infrastructure Levy to make the systems simpler and more standardised
- Introduction of Housing Delivery Targets forcing councils to oversee delivery of new homes, first proposed in the Housing White Paper
- Stronger protections for the green belt
