Affordable housing in the county - Developer's guide to delivering affordable housing in the County of
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Developer’s guide to delivering
Developer’s guide
affordable housing in to
thedelivering
County of
affordable housing in the county
Herefordshire
of Herefordshire
Information to support the Planning Obligations
Supplementary Planning Document – April 2008
January 2011
Working in partnership for the people of Herefordshire
DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
Contents
Page
PageNo.
No.
Introduction 1 Appendices 23
Legislative and policy 1. Glossary 24
background to enable
the delivery of affordable 2. RSL’s with an active development
housing 2 programme in the County of
Herefordshire 25
Definition of affordable housing 6
3. UDP Policies H2, H5, H6, H7,
Evidence of the need for H9, H10 26
affordable housing 7
4. Procedure for the provision of
Securing affordable housing and affordable housing 31
controlling occupancy 8
5. Affordable housing development
Local need criteria 9 brief 32
Local affordability levels 10 6. Herefordshire Council
contacts 33
Opportunities for the provision
of affordable housing 13 7. List of completed housing
need studies 34
The process for delivering
affordable housing 16 8. References 35
Financial contributions in lieu
of on-site provision or off-site
provision of affordable housing 21DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
Development Plan Documents in the
1. Introduction LDF. These saved policies include
Herefordshire Council (hereafter referred those relating to affordable housing
to as the Council) is strongly committed planning obligations.
to the delivery of affordable housing The saved UDP policies should be read
within Herefordshire and will make in the context of any relevant new
effective use of its planning powers to national or regional planning guidance
secure affordable housing to satisfy and any pertinent new evidence, to
current and future local housing ensure accuracy of information, prior to
requirements. their replacement by emerging LDF
This guide provides supporting evidence documents.
to the Planning Obligations Section 5 of the UDP refers to Housing
Supplementary Planning Document and policies, H2, H5, H6, H7, H9 and
(SPD) (2008) and provides up to date H10, H9 and H10 refer to affordable
information to aid developers housing and rural affordable housing on
considering pursuing affordable housing exception sites.
schemes.
In producing this guidance the Council
The Planning Obligations SPD provides has also had regard to central
advice to developers and applicants on Government's advice contained in PPS3
the use of legally binding agreements in (November 2006), Circular 05/2005:
the planning application process in Planning Obligations, the Council’s
Herefordshire. It specifically provides Housing Strategy, the Council’s ongoing
guidance on how the Council will programme of Housing Needs
implement the Herefordshire Unitary Assessment and recommendations in
Development Plan (UDP) Policy DR51 the Government’s response to the
on Planning Obligations. This guide Matthew Taylor Report – Implementation
supports the UDP policies that are Plan.
specific to affordable housing.
A variety of bodies play a part in the
The UDP was adopted in March 2007 provision of affordable housing. Within
and is the principal element of the the Council Planning Services and the
Development Plan for Herefordshire and Homes and Communities Division work
guides development within the county. It together to establish need and identify
was prepared to ensure consistency with opportunities for provision. Within
Government Planning Policy Herefordshire, a number of national and
Statements, the Regional Spatial local Registered Social Landlords
Strategy and the Community Strategy for (RSL’s) are involved in the provision of
Herefordshire. affordable housing, working in
The UDP is operative as part of the new partnership with the Council, the Homes
Local Development Framework (LDF) and Communities Agency and the
and most of its policies have now been private sector, including developers and
formally ‘saved’ by the Secretary of lending institutions.
State for Communities and Local This document will be reviewed annually
Government under the Planning and to ensure it remains relevant, reflecting
Compulsory Purchase Act 2004, until the housing situation in Herefordshire,
they are superseded by other emerging and to ensure its consistency with
1
emerging and future policies.
Policy DR5 is a ‘saved’ policy under the Planning and
Compulsory Purchase Act 2004, Para. 1 (3) of Schedule 8.
See further explanation in para. 1.1 of this guide.
1DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
1.2 Aims the provision of further housing
accommodation"
Affordable housing will be delivered through
a range of housing providers including 2.2 Town and Country Planning
developers and RSL’s in line with the Act 1990 as amended by The
requirements set out in national and
regional guidance. The guide aims to: Planning and Compulsory
Purchase Act 2004
Improve the delivery and maximise the
opportunities available for the provision The above Acts provide the legislative
of affordable housing to meet the framework within which the planning system
County’s housing needs. operates.
Reduce uncertainty, ensure a consistent 2.3 Planning Policy Statement 1:
approach and provide clear guidance for delivering sustainable
all stakeholders to follow. developments (PPS1)
Provide additional guidance on the (January 2005)
interpretation of policies on affordable PPS1 sets out the Government’s over
housing contained in the adopted UDP. arching planning policies on the delivery of
sustainable development through the
1.3 Scope and status of this planning system. This PPS replaces
guidance Planning Policy Guidance Note 1, General
Policies and Principles, published in
There are a number of different ways in February 1997. In particular paragraph 16
which affordable dwellings can be states that: “Development plans should
provided. This guidance is only promote development that creates socially
concerned with the provision of inclusive communities, including suitable
affordable housing through the planning mixes of housing”, while paragraph 23 (vii)
process, which includes dwellings states “Planning Authorities should…Ensure
provided through new development the provisions of sufficient, good quality,
opportunities, i.e. on allocated, windfall, new homes (including an appropriate mix of
exception sites and conversions. housing and adequate levels of affordable
housing)…”
2. Legislative and policy
2.4 Planning Policy Statement 3:
background to enable Housing (PPS3) (November
the delivery of 2006)
affordable housing National government advice on affordable
housing has been issued in the form of
This guidance has been produced in PPS3 and its accompanying document
adherence to, and should be read “Delivering Affordable Housing” (November
alongside, the following documentation. 2006).
2.1 Housing Act 1985 PPS3 underpins the delivery of the
Government’s strategic housing policy
The local authority has a statutory duty
objectives with the goal to ensure that
under part II of the Housing Act 1985 to
everyone has the opportunity to live in a
"consider housing conditions in their district
decent home, which they can afford, in a
and the needs of the district with respect to
community where they want to live. In
2DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
relation to rural housing PPS3 enables local 2.7 Circular 05/2005: Planning
planning authorities to grant planning Obligations (July 2005)
permission for land within or adjoining
existing villages, which would not normally Government guidance on planning
be released for housing, in order to provide obligations is provided in circular 05/2005.
affordable housing to meet local needs in
perpetuity. This Policy is available from the The circular gives guidance on the types of
Communities and Local Government obligations that may be acceptable. Local
website (see appendix 8). General advice planning authorities are recommended to
on PPS3 is available from the Local publish guidance themselves for potential
Planning Authority (see appendix 6) developers in order that the Council’s
approach is clear and easy to understand.
2.5 Planning Policy Statement 7: This information is provided in the SPD:
Planning Obligations (April 2008). The
sustainable development in Department for Communities and Local
rural areas (PPS7) (August Government (DCLG) issued Planning
2004) Obligations Practice Guidance in July 2006
which can be viewed on their website.
As Herefordshire is predominantly rural in
its nature it is essential that development 2.8 West Midlands Regional
adheres to Government guidance on the Housing Strategy (RHS) (June
future of country towns, villages, 2005)
undeveloped countryside and urban fringes.
The RHS has been produced by the West
This update of the guidance has been done Midland Regional Assembly for the period
in accordance with this national guidance by 2005 to 2021 and has a number of core
developing policies that seek to ‘sustain, aims, two of which are relevant are:
enhance and, where appropriate, revitalise
country towns and villages’ (PPS7 Para 2). to create mixed, balanced and inclusive
communities
2.6 Planning Policy Statement 12 to address the variety of needs across a
range of specific sectors of housing
(PPS12): local spatial circumstances.
planning (June 2008)
2.9 West Midlands Regional
PPS12 sets out the Government’s policy on Spatial Strategy (RSS)
the preparation and adoption of local (January 2008)
development documents (LDD) which will
comprise the Local Development The RSS provides a strategic long-term land
Framework (LDF). A full document can be use and infrastructure framework for the West
found on the Communities and Local Midlands, although its status is currently
Government website. under review. The Strategy still forms part of
the statutory development plan, however,
In accordance with the requirements of recent Government advice states that the
PPS12 this guide has been produced by the exact level of weight accorded to its policies is
Council to provide additional information to at the discretion of the decision maker. The
assist with the delivery of affordable housing Localism Bill is seeking to put in statute policy
policies contained within the saved policies revoking the RSS. It is anticipated the
of the Herefordshire UDP and the Planning Localism Bill will receive Royal Assent late in
Obligations SPD. 2011 (no detailed timetable has been
3DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
announced as yet) at which time the RSS will have been ‘saved’ by the Direction of the
no longer have a statutory basis. Secretary of State will remain in effect.
The UDP can be found on the Council’s
2.10 The Localism Bill (2010-2011) website (see appendix 8).
The Localism Bill was introduced to If land has already been identified for
Parliament on 13th December 2010. development, the details will be
The Bill would devolve greater powers to contained in the UDP.
councils and neighbourhoods and give local Section 5 of the UDP refers specifically
communities control over housing and to Housing and in particular policies H2,
planning decisions. H5, H6, H7, H9 and H10. H9 and H10
The main benefits of the Bill would be to specifically refer to Affordable Housing
empowering local people, freeing local and Rural Exception Housing (see
government from central and regional control, appendix 3).
giving local communities a real share in local Supplementary Planning Document
growth and a more efficient and more local
(SPD): Planning Obligations (April
planning system.
2008)
2.11 The rural proofing checklist The SPD: Planning Obligations provides
Rural proofing is a commitment by the advice to developers and applicants for
Government to ensure that all its domestic the use of planning obligations in the
policies take account of rural circumstances planning application process in
and needs (Rural White Paper 2000). It is a Herefordshire. It specifically provides
mandatory part of the policy making guidance on how the Council will
process, which means that, as policies are implement the UDP Policy DR5 on
developed certain factors need to be Planning Obligations and identifies the
considered. The Commission for Rural types of community infrastructure where
Communities (CRC) has published a new developer contributions will be sought as
Rural Proofing Toolkit (May 2009) to assist part of a proposed development. The
with the delivery of better policy making SPD: Planning Obligations can be found
across Government. The new resources on the Council’s website (see
and guidance are available on the CRC appendix 8).
website at www.ruralcommunities.gov.uk Locally, at the present time, the UDP
2.12 Local policy background to and the SPD: Planning Obligations are
the most important planning documents;
enable the delivery of however, over the course of the next
affordable housing year the Council will be preparing a new
Herefordshire’s Unitary Development spatial plan called a Local Development
Plan (UDP) (March 2007) Framework (LDF) comprising a Core
Strategy document as well as other
The policies in the UDP reflect development plan documents (DPD).
Government guidance and national and This will replace the UDP, and the SPD
regional planning policy. The plan- will be reviewed accordingly. A
making process does not stand still, and timetable of planning documents being
the UDP will be replaced in stages by produced is outlined in the Council’s
the Local Development Framework. Local Development Scheme. These
(The RSS will also be replaced in due documents are available to download
course). Until such time as the LDF
takes over, the policies in the UDP which
4DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
from the Council’s website (see Supporting People Strategy 2005 –
appendix 8). 2010
Herefordshire Affordable Housing to improve housing conditions in
Viability Study Herefordshire across all tenures.
The Viability Study provides the Council In addition, the key priorities for
and developers with an assessment of Herefordshire may change following
the economic viability of residential subsequent revisions of the Housing
schemes to support development of the Strategy. This document can be found
Core Strategy. The viability study is on the council’s website (see appendix
intended to provide well reasoned 8).
justification for proposed thresholds and Social Housing Agreement –
targets emerging from the study and (September 1998)
which take into account current market
uncertainties while recognizing that Core This document is an agreement between
Strategy policies have to be robust over the Council, the Housing Corporation
the medium to long term. The document (now the Homes & Communities
can be found on the council’s website Agency) and RSL partners who are
(see appendix 8). actively developing in the County and
have existing housing stock. It sets out
Herefordshire Housing Strategy the expectations of each partner,
2005 - 2008 particularly with regards to the
This document is currently being development of new affordable housing
revised, although this version is available in the County. This document is
from the Homes and Communities currently being revised; a copy of the
division. In conjunction with the Housing existing document is available from the
Needs Studies it identifies key housing Homes and Communities division (see
issues and priorities for Herefordshire appendix 6).
and will influence the mix of types, sizes Herefordshire Housing Needs
and tenures of units being requested. Assessment (2005)
The priorities are:
In line with the Housing Act 1985 and
to achieve a more balanced housing PPS3, the Council is committed to
market, by providing a range of assessing local housing requirements
affordable housing types, including within Herefordshire. A comprehensive
rental, shared ownership and low Housing Needs Study for the whole of
cost housing for sale to assist local Herefordshire was produced in 2005 and
people now priced out of the market is currently under review. This study
to address the increasing levels of identified significant need throughout
homelessness by developing more Herefordshire for affordable housing,
high quality temporary and may form part of the Local Housing
accommodation for homeless Market Assessment which is currently
household and the development of being produced.
housing options
A rolling programme of local housing
to ensure that vulnerable people needs surveys continues to be
needing housing linked to support undertaken to provide up to date
have their needs met in all parts of information on local housing needs. A
the area, as identified in the list of completed surveys can be found in
appendix 7.
5DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
Strategic Housing Market Assessment 3. Definition of affordable
(2008) (SHMA)
The Strategic Housing Market
housing
Assessment provides a detailed sub- The definition of affordable housing, as set
regional market analysis of housing out in Planning Policy Statement 3: Housing,
demand and housing need identifying Annex B is as follows:
local housing market areas within each
sub regional market and identifying the
key drivers in the West Housing Market
Area. In addition it provides an evidence Affordable housing is:
base for current and future requirements
in terms of market and affordable ‘Affordable housing includes social rented
housing to inform local policies and and intermediate housing, provided to
strategies. This document can be found specified eligible households whose needs
on the council’s website (see appendix are not met by the market. Affordable
8). housing should:
Herefordshire Local Housing Market Meet the needs of eligible households
Assessment (LHMA) including availability at a cost low enough
for them to afford, determined with regard
Herefordshire’s Local Housing Market to local incomes and local house prices.
Assessment considers the relationship
of the County’s 7 local housing market • Include provision for the home to remain
areas to assess the current provision of at an affordable price for future eligible
market and affordable housing, what the households or, if these restrictions are
future demands will be and will identify lifted, for the subsidy to be recycled for
how these demands will be met. The alternative affordable housing provision’.
assessment is currently being produced
and should be published in 2011.
Further details are available from the
Homes and Communities division.
Empty Property Strategy 2010-2013
Social rented housing is:
The aim of this strategy is to help meet
local, national and regional objectives for ‘Rented housing owned and managed by
housing and sustainable communities by local authorities and registered social
ensuring the existing housing stock is landlords, for which guideline target rents are
maximised, linking in with the Council’s determined through the national rent regime.
local housing, homelessness and private The proposals set out in the Three Year
sector strategies. This document is Review of Rent Restructuring (July 2004)
available on the council’s website (see were implemented as policy in April 2006. It
appendix 8). may also include rented housing owned or
managed by other persons and provided
under equivalent rental arrangements to the
above, as agreed with the local authority or
with the Housing Corporation as a condition
of grant.’
6DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
robust evidence base for the current
Intermediate affordable housing is: and future requirements in terms of
market and affordable housing to inform
‘Housing at prices and rents above those of local policies and strategies. A Local
social rent, but below market price or rents, Housing Market Assessment is currently
and which meet the criteria set out above. being prepared, to be published in
These can include shared equity products 2011, which will provide a more detailed
(e.g. HomeBuy), other low cost homes for analysis of the 7 identified local market
sale and intermediate rent.’ areas across Herefordshire.
A Gypsy and Travellers Accommodation
Assessment was completed in July 2008
As a result of current market trends, an with Shropshire, Telford and Wrekin and
overall balance between tenures would be Powys which identified a need for 83
considered more appropriate to meet a pitches to 2012 with a further 26 pitches
variety of housing needs and to create more to 2017 for Herefordshire.
balanced communities. Therefore a flexible
approach to deliver the affordable housing A study of support needs of older people
provision has been adopted. in Herefordshire is currently being
undertaken and should be published in
It should be noted that the key priorities for May 2011. It is intended to produce
Herefordshire may change following information about the housing and
subsequent revisions of the Housing support needs of Older People that can
Strategy, although it is envisaged that the be used for housing, planning,
priorities identified will remain unchanged regeneration and support planning
due to the acute need for affordable purposes. This information is also
housing. intended to support investment
decisions.
4. Evidence of the need
Housing plans for Mental Health and
for Affordable housing Learning Disabilities are currently being
developed and should be completed in
4.1 Herefordshire housing needs 2011.
studies
A rolling programme of parish level
In line with the requirements of Planning Housing Needs Surveys ensuring housing
Policy Statement 3 (PPS3), policies for needs data remains up to date and
the provision of affordable housing must accurately reflects the housing situation
be based on evidence of need. within the rural hinterlands of the County.
In 2008 a Strategic Housing Market This information should be read in
Assessment was undertaken across the conjunction with the Local Housing Market
West Housing Market area (inc. Assessment and the Housing Needs
Shropshire and Herefordshire). The Surveys to gain a full understanding of
Assessment provides a detailed sub- housing needs in Herefordshire to aid
regional market analysis of housing delivery.
demand and housing need, identifying
the key drivers in the West Housing
Market Area. In addition it provides a
7DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
4.3 Home Point Herefordshire 5. Securing affordable
Home Point, Herefordshire is the County’s housing and controlling
Choice-Based Letting Agency, a partnership
between Herefordshire Council and
occupancy
Herefordshire’s largest RSL’s covering over When using Planning Obligations the
97% of all social housing stock across Council will ensure that they are
Herefordshire. consistent with the general guidance in
Circular 05/052. This ensures that the
Home Point responsibilities include, affordable housing will meet the
operating the Common Housing Register (a identified local need and will remain
register of those in need of housing), available as affordable housing for local
providing nominations to partner people in the future.
organisations, advertising all of the available
affordable housing in the County and The wording and timing of these
operating the Mutual Exchange Register. arrangements needs care. Inappropriate
conditions and planning obligations
The total number of housing applications on create uncertainty and may halt the
the waiting list on 30.09.2010 was 4,983. progress of a scheme or could be the
subject of attempted modification or
discharge. To ensure that the planning
Waiting List 30/09/2010 obligation is effective, the Council will
ensure that it is executed before granting
Priority Gold Silver Bronze Total planning permission by agreeing Heads
of Terms.
105 837 2143 1898 4983 The Council will not normally impose
additional occupancy controls where an
RSL is to be responsible for the
management of the affordable housing.
However, on rural exception sites and on
low cost market schemes the Council will
Total No of offers accepted ensure that adequate occupancy
01/01/2010 – 30/09/2010 controls reserve the housing in question
for local needs in perpetuity, and this
Priority Gold Silver Bronze Total may involve the use of conditions or
planning obligations.
171 208 190 52 621
Where the affordable housing is to be
provided within a larger development,
Supply and demand data, collected by which includes general market housing,
Home Point will also be taken into account the Council will require the affordable
when determining the types, sizes and housing element to be built and made
tenure mixes for each proposed available for occupation before all the
development. general market housing is occupied.
The legal agreement or condition will
therefore include a restriction on the
occupation of a proportion of the general
2
www.communities.gov.uk/documents/planningandbuilding/
pdf/147537.pdf
8DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
market housing until the affordable employed locally or people with local
housing is available for occupation. connections as identified in section 6 of
There will be flexibility on the proportion this guide. If the housing remained
required dependent on the unallocated for some time, the criteria
circumstances of individual sites and this would be widened to ensure that a
will be considered on individual planning suitable occupant was found, first in
applications. In determining the adjoining parishes and then the rest of
proportion the Council will take into Herefordshire. The Council will need to
account factors such as the proposed monitor conformity with occupancy
layout, abnormally high development criteria and take appropriate
costs and the total number of dwellings enforcement action where necessary.
to be provided. To ensure that local housing needs are met,
The Council considers that the best way affordable housing units will be allocated
of ensuring that the affordable housing through Home Point Herefordshire (choice
will be enjoyed by successive as well as based lettings) in accordance with the
initial occupiers of the property is by the Council’s housing allocation policy.
ownership and management provided by
an RSL. For this reason the involvement 6. Local need criteria
of an RSL will be sought by the Council
in the provision of any element of For the purpose of this guidance:
affordable housing including where the
housing is low cost market or discounted Local connection to the market towns
low cost for sale. and Hereford City will, in most cases,
include the whole of the county.
Whilst arrangements should be legally
binding and ensure that the housing is Development villages, as identified in
occupied as intended, the Council will the UDP as ‘main villages’ and ‘smaller
also take account of the needs of the settlements’ serve a wider area and
developers and RSL’s who require that would meet the affordable housing need
schemes are financially viable and may of surrounding undefined settlements.
need to operate within certain time limits. Local connection to the development
The overall aim is to ensure that ‘main villages’ and ‘smaller settlements’
arrangements will deliver the objectives will be regarded as the parish within
of the policies set out in the UDP to which a person or persons are resident
meet local need. or employed, or resident within any
Where occupancy criteria are included adjoining parishes.
as part of conditions or planning If there are no applicants with a local
obligations in the case of rural connection to the primary parish, (in the
developments, a cascade approach is case of rural development) the allocation
adopted. This will ensure that occupants then cascades to adjoining parishes and
will always be found for any then to the rest of Herefordshire, in
accommodation, thus safeguarding an order to ensure a housing need is met.
adequate stream of revenue for those
managing the development whilst A local need for an affordable home exists
ensuring that people in local housing where an individual is able to:
need take priority. Under this approach
the eligibility criteria would initially be a) demonstrate that they are unable to
secure a house on the open market due to
restricted to local residents, people
a lack of available income and
9DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
b) meet one of the following need criteria as the most up to date figures if they are
identified below: uncertain.
i) existing residents needing
separate accommodation in the 7.1 House prices
county/parish (e.g. newly The preferred measure for house price
emergent households, people affordability is the ratio of lower quartile
having to leave tied house prices to lower quartile earnings.
accommodation); These ratios are published annually on the
ii) people whose work provides Department for Communities and Local
important services to the Government (DCLG) website. For 2009,
county/parish and who need to the ratio for Herefordshire was 8.5 which
live closer to the county/local was the worst affordability ratio out of the 14
community; West Midlands Authorities (unitaries,
counties and metropolitan boroughs). The
iii) people who are not necessarily ratios range from 3.7 (Stoke on Trent) to 8.5
resident locally but have long- (Herefordshire). Therefore there will be a
standing links with the local greater reliance to provide subsidised
community (e.g. elderly people housing through working in partnership with
who need to move back to the Registered Social Landlords.
county/a village for support);
In this document the term ‘market price’
iv) people with the offer of a job in refers to the average house prices which
the locality, who cannot take up are reported in the Quarterly Economic
the offer because of lack of Report published by the Herefordshire
affordable housing Partnership in conjunction with the Council.
This data is derived from statistics received
Other indicators of local need may be
from HM Land Registry and is available on
provided using the criteria for admitting
the partnership website (Appendix 9).
people to the Council's housing register
(operated by Home Point Herefordshire). Average (median) prices in Herefordshire,
across all property types, for the period July
7. Local affordability – September 2010 was £190,000 (Land
Registry figures published by DCLG).
levels Whilst the report provides the overall
average house prices relative to house
In order to assess affordability, both house
type, to ensure that local people are able to
prices and incomes have to be taken into
access the housing market, it was also
account to ensure that local households
considered appropriate to make
have the ability to access the properties
assumptions on incomes and the likely
being delivered. The figures provided will
occupancy of the various sizes of property.
be updated on a regular basis to ensure
that the data remains up to date. Details 7.2 Earnings
are published annually in April and are
available on the council’s website following Figures on Herefordshire earnings are
the links for housing then affordable given by ASHE (Annual Survey of Hours
housing development. However, and Earnings), sampled annually in April,
developers are therefore advised to contact and published annually by the Office for
the Homes and Communities division for National Statistics in November. The
median gross annual earnings for a full time
worker on adult rates in Herefordshire in
10DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
2010 is given as £19,851. (That is, 50% of 1 bed Single-earner household with
workers earn more than this figure, and 10% deposit.
50% earn less). In assessing affordable 2 bed Dual earner household with
house prices for the County, the following 10% deposit.
assumptions have been made based on 3 bed Dual earner household with
research with Mortgage Lenders: 20% deposit.
The purchaser will obtain a 90%
mortgage. 7.3 Affordability
Where there is one earner in the Using the assumptions in 7.2 and based on
household, the amount borrowed will be the median incomes as at April 2009:
3.5 times his/her gross earnings. This is
the multiplier recommended by the A single-earner household could afford
DCLG in their document “Strategic to buy a dwelling priced at £77,000
Housing Market Assessments – Practice A dual-earner household (first time
Guidance” dated March 2007. It is also buyer) could afford to buy a dwelling
backed up by current information priced at £96,000
obtained from mortgage calculators
available on-line e.g. A dual-earner household (moving up to a
http://guardian.co.uk/money/property 3 bed house) could afford to buy a
dwelling priced at £108,000
Where there are two earners in the
household, the amount borrowed will be 7.4 Low cost market housing
2.9 times their joint gross earnings. This
is the multiplier recommended by the Where it is considered appropriate to
DCLG guidance as referenced above, provide low cost market housing, the
and is also backed up by current web calculations in 7.1 – 7.3 will apply.
site information, as above. A further Therefore any discount should be sufficient
assumption is that where there are 2 to meet local housing needs. Where it is
earners, the second earner works part agreed between the developer and the
time, earning half the full time amount Council that the level of discount would not
(census figures for Herefordshire show enable a viable scheme, alternative
that in families with dependant children affordable housing options will need to be
where there are 2 earners, in nearly provided i.e. subsidised housing. It should
three quarters of cases the second be noted that no grant will be available to
earner works part time) subsidise a scheme of this nature.
However, where the dual earners are Where Low Cost Market Housing is
seeking 3 bed accommodation, an provided, the house type should be
assumption has been made that through developed to no less a standard than other
natural progression, applicants are market housing types being provided on the
better able to secure a larger deposit. development.
Therefore calculations for 3 bed have As the sale price has regard to house prices
been based on a 20% deposit. and earnings, it is considered that the
Based on this information, the following housing falls within the government
occupancy assumptions will be made definitions of intermediate housing as
when considering the affordability of outlined in PPS3.
individual developments
11DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
7.5 Rented or intermediate 74% of their gross income, and that their
housing housing costs should not exceed about
45% of their net income. Applying both
Where RSL’s are providing dwellings these assumptions, it is necessary to
available for social rent, affordable rents are multiply these two factors together (74%
seen to be rents that are within the Homes multiplied by 45%) giving 33%, which
and Communities Agency (HCA) guidelines means that the housing costs for shared
for the County. An indication of affordable ownership should not exceed 33% of the
rents can be obtained by contacting the gross income. This can be seen in a
preferred RSL partners of the Council. The worked example linked from the web page
Council’s expectation is that these rents will referenced above.
not exceed the guideline target rents as The figure of 30% of gross earnings is also
determined through the national rent indirectly backed up by the DCLG
regime3. document “Strategic Housing Market
Where RSL’s are providing dwellings Assessments – Practice Guidance” dated
available for affordable rent, the housing March 2007. This document takes a figure
provided will have the same characteristics of 25% of gross earnings as the maximum
as social rented housing except that it is that a household can afford to spend on
outside the national rent regime, but is rental (see chapter 5 of the guidance under
subject to other rent controls that require it the heading “Assessing whether a
to be offered to eligible households at a rent household can afford market renting”).
of up to 80 per cent of local market rents4. Shared ownership is designed to cater for
households whose income is higher than
To ensure that developments are those for whom renting is the only option,
sustainable and provide a range of housing but not sufficiently high to allow them to
to meet various needs, subsidised housing purchase 100% of the property. It is
in the form of shared ownership will be therefore assumed that such households
encouraged where the housing costs do not will be able to allocate a slightly higher
exceed 30% of the gross earnings using the percentage of their income to housing
assumptions in 7.1 – 7.3 above. Should costs, therefore the figure is raised from
this figure of 30% be exceeded, the 25% for renting to 30% for shared
subsidised housing (for rent) will be ownership.
requested.
Where developers seek the “best price”
The figure of 30% follows on from guidance from the preferred RSL partners the council
from the Homes and Communities Agency will be seeking confirmation of the rent
– see website levels and shared ownership costs that are
http://www.cfg.homesandcommunities.co.uk to be charged, and will monitor these levels
/affordability-calculator-and-guidance. This to ensure they remain affordable as defined
guidance uses the assumption that a above.
household’s net income will be (on average)
7.6 “Affordable market” housing
3
The national rent regime is the regime under which for rent (intermediate)
the social rents of tenants of social housing are set,
with particular reference to the Guide to Social Rent The Council is keen to provide a range of
Reforms (March 2001) and the Rent Influencing affordable housing types and has
Regime Guidance (October 2001).
undertaken research into the provision of
4
There is further guidance on Affordable Rent in the market housing for rent that can be
Homes and Communities Agency Affordable Homes sustained by local people in housing need.
Rent Framework document.
12DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
Research suggests that 80% of the Local resources (National Affordable Housing
Housing Allowance will enable a reasonable Programme Grant) to develop affordable
proportion of single and dual earner dwellings on sites other than those
households to access this type of negotiated with developers through the
accommodation. For more information planning system and seek other/new
please contact the Housing Needs and mechanisms to do so.
Development Team.
The information below provides
guidance on which sites affordable
8. Opportunities for the housing will be required on as part of an
overall development scheme.
provision of affordable
housing 8.2 Site thresholds
Unitary development plan thresholds
8.1 Opportunities
The Housing Needs Studies detailed Policy H9 (see Appendix 3) requires
previously, have identified significant affordable housing at an indicative target
levels of housing need in Herefordshire. of 35% of new housing proposals. As
Affordable housing will be provided in this is an indicative target and in view of
accordance with: the evidence outlined in the Housing
Needs Assessments, referred to in
a. UDP Policies used to secure section 4, requests for a percentage of
affordable housing on sites allocated affordable housing provision of more
in the UDP including newbuild and than 35% may be made in particular
conversions;other appropriate sites locations where an acute need for
e.g. windfall sites which meet the affordable housing can be identified.
thresholds identified in UDP Policy The 35% target figure will be reviewed
H9/H10; as part of the preparation of the
b. where other opportunities arise, for Council’s Local Development Framework
example through the exceptions and in the light of further housing needs
policy. assessments, the requirements of PPS3
and any further amendments to the
Developers should be aware that, Regional Spatial Strategy.
affordable housing schemes brought
forward through UDP policies will not be Indicative targets for affordable housing
supported by grant funding. For more have been set for specific sites identified
information see Paragraph 9.6. Land in Policies H2 and H5. Affordable
that is likely to be the subject of such housing will also be required on suitable
affordable housing planning obligations windfall sites above the following size
should be valued accordingly as the land thresholds:
upon which the affordable housing is to in Hereford and the market towns
be sited, could have an effect on the (excluding Kington) and settlements
overall value. above 3,000 population, sites for 15
or more dwellings or more than 0.5
It is acknowledged that the planning
hectare in extent; or
system will not alone be able to meet all
the identified local housing need through elsewhere in the County in
new development. The Council, in its settlements identified in Policy H4
housing enabling role, will work with (see appendix 3) (including Kington)
RSL’s to target scarce housing capital of less than 3,000 population,
13DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
proposals for housing development document encourages developers to
on sites of 6 or more dwellings or consider such provision where they
more than 0.2 hectares in extent. and/or the Council think it feasible and
appropriate.
In considering the suitability of sites above
these thresholds to provide affordable 8.3 Site suitability
housing, regard will be given to:
In order to meet the County’s affordable
the proximity of local services and housing need the Council will require
facilities and access to public developers to include affordable housing
transport; on allocated sites and on windfall sites
whether there will be particular costs which meet the thresholds as identified
associated with development of the within the UDP as supported by PPS3
site; and (paragraph 29). The UDP identifies
whether the provision of affordable settlements where the provision of
housing would prejudice the realisation affordable housing would be appropriate.
of other planning objectives that need In relation to sites, some may be more
to be given priority in development of suitably located for affordable housing
the site. than others. Not all sites may be
When an application for housing suitable for affordable housing. A site in
development is submitted on a site that an area with little or no affordable
meets policy, the Council will advise the housing, with close proximity to services
appropriate level of affordable housing and public transport, may be eminently
provision for each individual site in line suitable for a good proportion of
with current policy. The Council will take affordable housing. Some sites,
into consideration the results of any needs particularly those involving the
studies and other needs data, the scale of development of previously developed
development planned for the site, site land, will probably have some
conditions, other development constraints on development. Normally
requirements and likely development these will be taken into account in the
costs. Where delivery of an exception site land purchase price.
is being proposed, the application must be However, where the developer can
supported by up to date housing needs evidence in detail that a particular
data, which can be provided by the development constraint(s) exist, such as
Council’s Housing Needs and contamination, access problems and
Development Team. The current unusually high site preparation costs,
threshold, as detailed above, will be and where the development of housing
reviewed over the course of the next year would lead to significant improvements
as the Council develops the Local in the local environment, the Council will
Development Framework. A timetable of take these elements into account in
the Planning documents being produced negotiating the proportion of affordable
is outlined in the Council’s Local housing to be delivered. It should be
Development Scheme (available on the noted that only in very exceptional
council’s website, see appendix 8). circumstances will the proportion of
affordable housing be negotiated to
In line with PPS3, this guidance does not below 35% see 9.2.
preclude developers from providing
affordable housing on sites that are The proportion of affordable housing will
below the thresholds set above and this be based on the net developable site
14DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
area and total number of units. The will, however, be subject to strict controls
definition of net developable site area is as set out in the UDP policies.
taken to include access roads within the
Permission will only be granted where
site, private garden space, car parking
there is clear evidence of need local to
areas, incidental open space and
the parish, generally available from the
landscaping and children's play areas.
Council.
The definition excludes major distributor
roads, primary schools, open spaces In all cases where affordable housing is
serving a wider area and significant to be provided, a secure legal
landscape buffer strips. agreement e.g. planning obligation, must
be in place to ensure that the benefits of
This is reinforced in the SPD: Planning affordable housing will be enjoyed in
Obligations which states that when perpetuity by initial occupiers and
considering developable site areas and subsequent occupants.
the total number of units the Council will
have consideration for: Schemes involving the development of
general housing as well as affordable
sites where the development has housing for local needs i.e. a mixed
been phased, or a site sub-divided or housing scheme will not be permitted on
parcelled in order to avoid the sites outside settlement/ development
application of the affordable housing boundaries, as identified in the UDP.
policy, whether in terms of units or
site size. In these circumstances the 8.5 Planning obligation
whole site will be assessed; or Affordable housing provided in
where the Council reasonably accordance with this guide will normally
considers that a development be secured by means of a condition or
scheme has been specifically planning obligation in accordance with
designed to fall under the threshold Section 106 of the Town and Country
or a site’s potential is not being fully Planning Act 1990.
realised; or Planning obligations, sometimes called
if having had a scheme approved, a “Section 106 Agreements” are legally
subsequent proposal for additional binding agreements entered into
housing units brings the cumulative between a Local Authority and a
total over the threshold. developer, as part of the Planning
Permission, and are an established and
8.4 Exception sites valuable way of bringing developments
In rural areas, where only limited in line with the objectives of sustainable
housing development is permitted, UDP development as articulated through
policies make provision for small relevant Local Regional and National
affordable housing schemes (generally Planning Policies. An example of a
15 units or less), to be developed on planning obligation is contained in
land either within or adjoining the village section 8.2 referring to thresholds for
where housing would not normally be affordable housing.
permitted as an exception to normal
planning policy.
The Council recognises that these small
schemes help to maintain the viability of
rural communities. Such development
15DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
housing brief, outlining the housing
9. The process for need, dwelling types and numbers and
delivering affordable tenure mix relating to the proposed
development (see appendix 5). In terms
housing of establishing need, the Council will
9.1 Introduction refer to current housing need survey
information and data from the Home
The process for delivering the affordable Point register. However, it may be
housing element of a residential necessary on occasions for developers
development should ensure that it to commission an up to date housing
causes the minimum delay in preparing needs survey, in rural areas, to confirm
and processing of the planning the need for affordable housing and
application and to ensure that the provide information on a recommended
proposals are fully integrated in the mix of dwelling types and sizes. The
overall development. Council would be happy to assist at a
To ensure that each party has a clear small charge; further information can be
understanding of the process it is obtained from Housing Needs and
outlined in appendix 4 and is detailed as Development.
follows. When planning applications come
forward that form part of an allocated
9.2 Pre application stage site the developer will be required to
(outline or full) specify the proportion of affordable
Developers should be aware that the housing relative to their application.
provision of affordable housing may Where applicants do not seek the advice
have an impact on the value of the land, of the relevant officers at this early
as well as implications for housing mix stage, significant delays in progressing
and layout. It is therefore essential that the application could result in refusal.
an approach should be made to the With outline planning permission, it is
council to establish the affordable appreciated that full details on units etc.,
housing policies and requirements may not be known. The Council will, in
pertaining to the proposed development. these cases, seek to secure the
To achieve clear guidance, it would be percentage of affordable housing as
beneficial if the developer provides a outlined in the appropriate policy with
brief outlining requirements detailed negotiations to be contained in
Planning Officers welcome early a S106 agreement and Heads of Terms.
discussions on proposed developments In the majority of cases the affordable
prior to planning application stage to housing element will require the
discuss the layout, house types, sizes, involvement of an RSL; a preferred list of
rents and sales prices together with any RSL providers operating in
additional financial contributions and Herefordshire is located in appendix 2.
delivery mechanisms. Planning Officers Involving an RSL early in the process will
will then be in a position to advise on the enable the developer to better plan the
general planning policies for the provision of affordable housing in
proposed development. conjunction with the market element of
The Homes and Communities division the site. The Council will expect an
based on the information provided by the applicant to provide the affordable
developer, will provide an affordable housing for one of the Council’s
16DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
preferred partner RSL’s. This will applicable. In all cases it should be
ensure the dwellings are well suited for assumed as part of the development
local needs. Developers who wish to process that 35% of all dwellings on all
provide the housing using alternative sites, other than exception sites (where
delivery arrangements will need to 100% applies) will be made available for
satisfy the Council that local housing affordable housing solutions.
needs will be best served by this
The only additional and exceptional
arrangement.
costs which the Council will consider as
Developers are advised to discuss with threatening site viability are those that
RSL’s at an early stage the potential could not have been reasonably known
purchase price for affordable housing to the developer at the point of land
units, so that they are aware of purchase, for example unforeseen
constraints on values before negotiating contamination costs and market
for the purchase of land and variation. The Council will not consider
construction costs. the price paid for the land nor the
The initial site layout should be requirement to provide the full range of
considered between the developer and affordable housing and planning
the RSL to ensure that the affordable obligations a cost that was not known to
housing element is integrated and can the applicant at the point of land
be accommodated within the overall purchase.
proposed development.
9.3 Submitting a scheme as part
If the developer chooses to provide the
of a planning application
affordable homes without the
involvement of an RSL, the Council will Once the developer has agreed the level
require that the properties are allocated of affordable provision with the Planning
through Home Point, to ensure the Services and the Homes and
properties are allocated to households in Communities division a proposal relating
local housing need, at an affordable cost to the affordable housing provision will
and in perpetuity. need to be prepared which specifies:
In exceptional circumstances a financial the number of affordable housing
contribution may be considered for off-site units,
provision of affordable units, but evidence the way in which the developer will
to demonstrate that affordable housing ensure that the housing units are
cannot be delivered will be required. available in perpetuity,
The Council will not normally accept a details of the dwelling types and
reduced percentage of affordable tenure,
housing units, or off-site provision. the distribution of the affordable
Should developers raise issues of houses to ensure a well integrated
financial viability, a current viability and designed scheme is provided
analysis of the proposal must be with a good mix of dwelling types,
submitted alongside any planning size and tenure,
application, endorsed by an independent if an RSL has been selected for the
valuer, and the developer must be development and if so, which one.
prepared to cover the Council’s costs to
have a third party appraisal completed. When the planning application is
The Council will consider the analysis eventually submitted, the consultation
and determine if a reduced amount is process with the Homes and
17DEVELOPER’S GUIDE TO DELIVERING AFFORDABLE HOUSING IN HEREFORDSHIRE
Communities division should be to Standards. Where low cost market
confirm details already discussed in housing is provided, as a minimum,
stages one and two and should therefore these should be of no lesser standard
take the minimum statutory period. than other market housing of the same
house type across the proposed
9.4 Approval of the planning development.
application
Developers must demonstrate that they
Planning permission for development will have applied the Government’s Secured
be granted subject to a S106 agreement, by Design initiative to the scheme.
limiting the occupation of the dwellings
to persons who have satisfied the For all affordable units, developers will
council’s local housing need criteria be required to meet government
identified at 6.0 of this guidance. requirements in relation to meeting Level
3 (***) of the Code for Sustainable
The S106 Agreement also ensures that Homes, increasing to Level 4
affordable housing remains affordable in compliance in April 2011. The level will
perpetuity. Where any of the affordable be agreed when determining the
housing units are made available for application to whichever is appropriate at
shared ownership, the occupiers shall that point in time.
not be permitted to own more than 80% The objective is to provide a balanced
of the total equity value of such units. and mixed scheme with no noticeable
9.5 Design standards difference in the quality of the residential
environment between the private market
Where a unit will be transferred to an housing and the affordable element.
RSL the Council will expect the current Where a local Village Design Statement
Design and Quality Standards produced or Parish Plan has been developed and
by the HCA as a minimum standard of adopted as supplementary planning
development for the rented units. In guidance, this may assist in identifying
addition, it is expected that the units be issues around local distinctiveness.
developed to Lifetime Homes Standards
unless there are constraints on the Permitted development rights will
overall proposed development. In these normally be removed to ensure
instances, the developer will need to properties are not extended or altered in
negotiate the standards on a case by any way as to increase values beyond
case basis. Detailed guidance on the affordable level. This will not prevent
housing layout, external space consideration of adaptations or
standards, general design principles, extensions in certain circumstances, for
parking and highway standards, security instance, where required to assist an
and landscaping will be provided by occupant with disabilities.
Planning Services. Developers will be Affordable housing should be distributed
required to provide full information as to across a site and across phases, to
these constraints and each application ensure that units are not concentrated in
will be considered on its own merit prior one location. Phases/locations will be
to the discharge of this requirement. determined case by case having regard
to the overall development proposal.
Developers will be encouraged to
provide low cost market housing and
shared ownership housing to Design and
Quality Standards and Lifetime Homes
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