Affordable housing threshold under fire

THE Rural Services Network has urged the government to abandon proposals to exempt smaller developments from affordable housing requirements.



The Department for Communities and Local Government has been canvassing opinion on proposals to introduce a 10-unit threshold for Section 106 affordable housing contributions.


The Rural Services Network (RSN) has already responded to a government consultation on the proposals.


In a further move, RSN chief executive Graham Biggs has now written to communities minister Brandon Lewis over the issue.


"The 10-home threshold would be nothing short of ruinous for the provision of affordable housing in rural areas," said Mr Biggs.


Currently 66% of affordable homes in rural areas came through Section 106 Agreements, he added.


Most developments were small, said Mr Biggs. The vast majority were below the ten unit threshold - not least because the smaller the scheme, the less the local opposition.


"Without an obligation to provide any affordable homes, this supply will virtually dry up."


The letter was sent to Mr Lewis on behalf of the members of the Rural Services Network – and in particular its local authority, community and housing provider members.


A copy of the letter can be seen here. The RSN has also produced a briefing note outlining concerns regarding the 10-unit threshold proposal.


RSN members who share these concerns are being urged to write urgently and directly to Mr Lewis. They are also urged to contact their local MP.


Copies of the letter and the briefing note have been sent to MPs representing rural constituencies urging them to contact the minister as well.


One in three of new rural affordable homes are achieved through the Rural Exception Site route, the letter says.


If the ten unit threshold was imposed, the "hope value" would increase significantly that all new homes could be sold at full market value.


This would make it extremely difficult to persuade owners to part with land on the special terms usually applying to Rural Exception Site.


In the rural context, a policy which required local planning authorities not to require an affordable housing contribution from sites of less than 10 units had no rational or purpose.


"Its consequences would be no less than catastrophic," the letter says.


"It also would fly in the face of localism and would seriously undermine the national planning policy framework. Such a proposal has clearly not being rurally proofed."


To meet these concerns, the letter calls on the government to exempt – at the very least – all sites in villages of less than 3,000 population.


There is clear precedent for such an exemption limit – and preferably towns and villages of less than 10,000 population – from the removal of an affordable housing requirement, it adds.


Meanwhile, a group of cross-party MPs has brought a bill before Parliament to protect rural housing communities from the government's proposals.


Led by Lib Dem MP Tim Farron, the group believes the proposals risk drying up the supply of affordable homes in small communities.


The bill, which has the backing of five MPs from all parties, would give local authorities the decision on the most appropriate threshold, rather than central government.


Mr Farron said: "If the government does not accept our bill, it will hurt rural communities as we seek to provide enough homes for local people of all ages."


Removing the obligations would virtually cut off one of the two major routes which guaranteed the supply of rural affordable homes, he added.


It would also risk affecting the other key mechanism - rural exception sites - making it harder to guarantee a supply of land.


"This could ratchet up the price of land, which would even backfire back onto small builders while delivering windfall gains for speculative land traders," said Mr Farron.

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