Communities could have missed out on nearly 30,000 affordable
homes in the past five years if proposed government planning
reforms were in place, new analysis by the Local Government
Association reveals today.
As part of its wide-ranging proposals for the planning
system, the Government is considering removing the requirement
for developers to build affordable housing on small sites. It is
currently consulting on whether to apply this to sites where the
number of homes is under either 40 or 50.
Analysis by Glenigan, commissioned by the LGA, shows that
between 2015/16 and 2019/20, there were 119,505 private homes
built on sites of 10 to 49 units.
Based on an average of developers being required to make 25
per cent of new housing affordable, this would have included
29,876 affordable homes being built for either rent or purchase.
These homes would not have had to be included in developments
under these plans, including more than 5,000 affordable homes in
the south-east and almost 4,000 in the north-west.
The LGA, which represents councils in England and Wales, is
concerned this plan could see the overall amount of affordable
housing significantly reduced across the country. It also warns
that such a threshold could encourage developers to “game the
system” by putting forward proposals of 39 or 49 or fewer homes
respectively, on sites which are able to take more, to avoid
affordable housing requirements.
For example, under these proposals:
-
If the affordable housing threshold had been 40 units,
Lewes District Council would have seen a 32 per cent reduction
in affordable homes delivered. A higher threshold of 50 units
would have resulted in a 37 per cent reduction.
-
Elmbridge Borough Council could see affordable housing
almost halved. With 486 affordable homes either built, under
construction or with planning permission, this could be reduced
to 271 if the proposed 40 or 50 unit threshold is
introduced.
-
Cornwall Council has estimated that the impact on the
delivery of affordable homes could potentially be up to 300
fewer affordable homes per year.
The LGA says this goes against the Government’s ambitions
to make changes to the planning system to “deliver at least as
much – if not more – on site affordable housing as at present”.
It is calling for councils to be able to determine local
affordable housing thresholds, rather than being decided
centrally, which fails to take into account the wide variation in
housing markets across the country.
It comes as latest figures show more than a million
households are on council waiting lists and almost 93,000
households are living in temporary accommodation, because of a
lack of suitable low-cost housing.
To help address the housing crisis, the LGA has set out how
the Government can use the forthcoming Spending Review to empower
councils to be able to build significantly more council housing
and boost the supply of low-cost homes to rent and buy across the
country.
Cllr David Renard, Local Government Association housing
spokesperson, said:
“Proposals to exempt developers from having to build
affordable housing on certain small sites are of huge
concern.
“With rising housing waiting lists and record numbers in
temporary accommodation, we desperately need to be building more
affordable housing, not less. We need to build homes that are
affordable to local people and help to reduce homelessness,
rather than contributing additional funds to developers’ and
landowners’ profits.
“These current proposals risk allowing developers to game
the system by only putting forward schemes for fewer than 40 or
50 homes, and so avoid building any affordable homes at
all.
“We want to work with government on reforming the planning
system, which ensures that it is improved and strengthened,
delivering beautiful homes and places for communities. But this
also needs to see the requirement for affordable housing retained
as a key element, by giving councils the power to determine what
is right for their local area.”
NOTES TO EDITORS
1. Regional breakdown
Homes built 2015/16 to 2019/20 (and affordable housing
provided based on 25% estimate)
East Midlands 11,764 (2,941)
East of England 14,350 (3,587)
London 11,975 (2,993)
North East 5,442 (1,360)
North West 15,680 (3,920)
South East 21,351 (5,337)
South West 15,028 (3,757)
West Midlands 12,945 (3,236)
Yorkshire & the Humber 10,970 (2,742)
