Greater emphasis needs to be placed on delivering Affordable Housing through off-site allocations, concludes national planning and development consultancy Lichfields in a new report.
‘On or off site; Considering the value and approach to affordable housing delivery’ highlights how almost 50% of English local authorities say they only accept ‘off-site’ delivery in ‘exceptional circumstances’.
The research says that to meet market needs over 40% of the 300,000-plus annual target of new UK homes should be in the affordable category – but this currently runs at around one-quarter.
Whilst finding three quarters of English and Welsh Local Plans reference off-site affordable housing in various policies, Lichfieds would like to see this increase to ensure there is no ambiguity in respect of off-site provision.
Report author Lichfields’ Associate Director Fiona Braithwaite said: “In the context of the housing crisis, it has becoming increasingly difficult to access the housing market, particularly for first-time buyers, leading to growth of the private rented sector – and increased rental costs.
“Provision of affordable housing not only helps to address this vicious cycle, but also helps to create mixed and diverse communities and ensures a choice of housing is available.
‘Lichfields has found that off-site provision clearly has a number of benefits and a more positive approach towards such provision, influenced by national policy would support the creation of mixed communities.”
Affordable Housing is stipulated as being discounted at least 20% below local market value, with the NPPF also requiring major developments to deliver at least 10% of homes as affordable.
The report acknowledges that achieving these targets can sometimes make a scheme unviable.
Lichfields says the benefits of off-site housing include matching the right type of homes to locations, and maximising the potential development of brownfield land within urban areas.
It says that for many councils a key benefit of accepting off-site contributions has been that commuted S106 sums enable the delivery of a larger number of affordable houses, off-site, than would be possible on-site.
The report acknowledges some downsides including; an over-concentration of affordable housing in particular locations, leading to market imbalances, and time-lags in the receipt of S106 money for off-site schemes.
Policy Recommendations
The report goes on to say that Local Plans should take a more strategic approach to off-site affordable housing – identifying sites where off-site would be preferable and identifying where the S106 contributions could be spent.
Lichfields says this would help guard against over-concentrations of certain tenures and help achieve mixed communities.
Local Plans should also seek to identify off-site affordable housing contributions for allocations which are affected by viability issues. This would help to shift thinking by elected Members and Planning Officers, who consider off-site provision less acceptable to on-site delivery.
Lichfields highlight how the decline in the affordability of private sector housing and rising private sector rental costs has left many families with no choice but to live with other households.
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